By Alex Larsden
June 20, 2022
BURLINGTON, ON
Will Ethereum Outpace Other Cryptocurrencies To Reach $10,000 ?
Since it was first launched in 2015, Ethereum has found its place in the crypto market as the second-largest cryptocurrency in the world behind Bitcoin, with a market capitalization of $143 billion.
It has a current value of just over $1,200, as of the time of writing.
On November 16, 2021, Ethereum achieved an all-time high value of $4,891 – around the same time Bitcoin also reached its all-time high value. Since then, it has experienced some massive fluctuations in its price. Just like Bitcoin and other cryptocurrencies, Ethereum is not new to volatility.
Even though the high volatility brings about a high level of risk, Ethereum can be a good long-term investment for enthusiasts and seasoned crypto traders to consider. As a result, many experts believe that Ethereum is capable of reaching – and surpassing – the $10,000 mark. This article will provide more details on this.
New Upgrade in Ethereum Can Be a Driver of Its Price
Will Ethereum hit the $10,000 threshold in 2022? Most probably not. Yet, according to many experts, it is only a matter of time before achieving the mark. Various reasons support that belief.
In March 2021, developers approved a major upgrade, titled EIP-1559, to change how the network runs. This upgrade is aimed at helping with the limitation that comes with the current Ether supply by drastically changing how the transactions work.
By doing this, Ether coins will be eliminated when a base transaction fee is sent to the network. The destruction of these coins will lead to a reduction in supply. The potential scarcity turned out to be good news among Ethereum investors at the time.
With a limited supply, demand will tend to rise. When that happens, the price will increase as well. For holders of Ethereum, there is a potential for high returns in the long term. This is because the fall in supply will cause buyers to purchase the coin at the price dictated by the seller of the crypto asset.
However, Ethereum transactions are on the rise. Almost all reputable crypto exchanges offer the digital asset on their platform. By using tools like Bitcoin Prime, traders are exposed to a high possibility of successful trading.
There are several other factors that have caused the price of Ethereum to fall in recent months. While Ethereum can be used for many applications, it is not immune to these factors, which include rising interest rates, war, and availability, among other factors. As the crypto market becomes intertwined with the global economy, these factors tend to have more effect on Ethereum prices.
For most experts, Ethereum is a good investment that has all it takes to hit the $10,000 mark. Even though it is currently traded at a low price, many believe that Ethereum will surpass the mark.
Is Ethereum A Good Investment?
Much like other cryptocurrencies, Ethereum is characterized by a high level of risk due to its high volatility. However, in the long term, Ethereum is a profitable investment. To make the most of its volatility, it is important to adopt the best risk management plan.
Besides this, before dabbling into it, traders should ensure that they acquaint themselves with how trading Ethereum works and the factors that can drive its prices.
Conclusion
Ethereum has enjoyed gains of over 160% in all but two years since its inception. This represents a high possibility for a cryptocurrency to reach an all-time high quickly. Will Ethereum reach the $10,000 mark in 2022? Only time will tell. However, all signs point to the fact that the cryptocurrency has the resources and potential to surpass the mark anytime in the future. For this reason, it is a good investment to consider.
