Will Ethereum Surpass The $10,000 Bar In 2022?

Ethereum Prediction for 2022

Do you know how many cryptocurrencies there are??? At the time of writing more than 8000 cryptos are in the market. But whenever you hear about crypto, probably it could be Bitcoin and Ethereum (Actually Ethereum is the blockchain and Ether is its native crypto). The reason behind the fame is their market capitalization. Currently, Ether is the second-largest cryptocurrency in the world and still growing. Many crypto intellectuals consider fruitful investment in Ether in 2022. 

Ethereum in 2022 can bring revolution in crypto history and its walk for new heights completely depends on investors and the market. Many crypto intellectuals are confident that Ethereum could touch the $10,000 bar by the end of the next year. There are many factors and developments, which will decide Ether’s rise or fall in the next year. So let’s take a lookout. 

How Will it Outperform other Blockchains?

At the time of writing this article, Ethereum is the second-largest cryptocurrency in the world after Bitcoin. Bitcoin and Ether alone are holding up $932 billion and $481 billion market cap respectively, which is over 50% of the total crypto market cap. 

So you might be thinking how Ether got that much market cap? The answer is simple, Ethereum blockchain has immense benefits over other blockchains like Cardano and Solana. Such as its capability to flow multiple transactions smoothly, privacy and security, or its connectivity. At every sight, you’ll find Ethereum a more capable blockchain than others. 

Since its launch in 2015, the Ethereum blockchain has proven its potential in many ways. Most of the crypto-based projects developed on Ethereum. Leading lending and borrowing protocols, Aave, CREAM, Compound are also built on an Ethereum blockchain.

At present, nearly 3000+ decentralized Apps and 214 decentralized projects are running on the Ethereum ecosystem. Smooth transaction facilities and connections with most of the projects attract many Enterprises, which ultimately benefits the circulation of Ether (ETH). 

So now the question is what’s next?

What is the Future of Ethereum in 2022?

The first thing you need to understand is that no one is able to predict the future of any cryptocurrencies. Crypto’s price totally depends on liquidity, exchange, and volatility. As you know, the more people invest in a particular entity or crypto, the more it will be getting high.

2021 is proven a boon for Ether investors. Like Last year, On 30th Dec 2020 ETH closed in the market at around $750, and at the time of writing Ether is revolving over $4,000, which is almost 450% up in a year!!!

Factors that will Help Ethereum to Reach New Heights in 2022

1. London Hard Fork 

In August 2021, Ethereum developers introduced ETH burning mechanism under the label of “London Hard Fork”. ( FYI it has no connection with London).

The burning mechanism is a complex topic for you until or unless you are one of those developers. So, let me keep it simple for you. 

Basically, this mechanism allows blockchain to burn some portion of circulated crypto coins or currency, which helps to reduce the inflation rate. Ultimately, scarcity of tokens against high demand increases the value of a particular token. 

In Ether Case, developers have launched two algorithms to burn coins, EIP-1559 and EIP-3554. EIP-1559 helps to reduce fees. At the time of writing, according to watchtheburn, more than one million Ether have burnt.

2. Ethereum 2.0 Update

The most promising project of Ethereum Blockchain and Most delayed too! 

You can consider Ethereum 2.0 as the first up-gradation of the Ethereum blockchain. The upgrade expects to bring a more flexible transaction process with fewer fees, which is currently a burden for many users. Many users are paying heavy transaction fees on their daily transactions. 

The new version of Ethereum 2.0 includes Sharding, which allows blockchain to divide multiple transactions in a different area or “shards” to execute simultaneously. Ultimately, it will reduce transaction processing time and avoid congestion on networks. 

Also, the new update will substitute the proof-of-work mechanism with proof-of-stake, more energy-efficient. Proof-of-work requires a large amount of energy across nodes, which makes it “Costly” and hazardous for the environment. Proof-of-stake resolves this issue. 

3. DeFi Activity 

The cryptoverse is booming and every crypto investor wants to walk in the safe passage. Currently, Ethereum is the second-largest crypto in the world and that gains the attention of many new investors and traders.

Moreover, many DeFi projects are taking place on Ethereum blockchain and some of them are adopting Ether as a governance token. The rapid adoption of Ether can boost the supply and aid to take it to new heights.

At present, numerous DeFi projects are looking at Etheruem blockchain to run their projects in a smooth way. This year, Some leading decentralized anonymous organizations (DAOs) have launched on the Ethereum blockchain. Projects like FreeRose and Constitution DAOs have attracted the attention of many investors.

4. NFT Activity 

A non-fungible token is an emerging concept in blockchain technology. Simply, NFTs are just collectible in digital form. Currently, most of the NFT marketplaces supports Ethereum, and owing to this with the expansion of NFT Ether transaction flow will also increase. 

Top of the most expensive NFT, from Pak’s merge to  Beeple’s 5000 days and Human one used Ethereum’s ERC 721 NFT standard. Even the oldest and largest NFT project CryptoPunk is built on Ethereum. Moreover leading NFTs platforms such as Opensea, Rarible, and Nifty Gateway allow minting using Ether.

Benefits of Ethereum Blockchain 

Today, thousands of crypto projects and Dapps are running on the Ethereum blockchain, and in the near future, many more are planning to launch. You will be surprised that the Ethereum blockchain is totally inspired by Bitcoin Blockchain’s open-source code.

So, What makes Ethereum more likable? Let’s go through it 

1. Flexibility of Network

Currently, Ethereum is holding a large number of nodes on its network and without any congestion they are active. Ethereum currently handles most of the crypto projects and Dapps. Even this last number of rush on network Ethereum allows clients and users   

2. Scaling Solutions

As you know, day by day the crypto-verse is expanding. The scaling solutions have proven a boon for Ethereum users and investors. Scalability solutions on Ethereum allow blockchain to increase throughput and decrease transaction process time. Also, some scaling solutions help blockchain to reduce gas fees. Some effective layer-2 scaling solutions are Polygon, Cartesi, Arbitrum, Parastate, and Optimism. 

3. Tokenization 

Ethereum blockchain allows developers and project makers to tokenize any digital assets. This means you can tokenize any video, images, music, or any other digital format. 

4. Smart Contract Modification

Smart contracts are just nothing but just computer-generated transaction protocol, which helps in the transaction execution process when certain conditions are met. 

They allow creators to modify and decide certain conditions as per their requirements. This feature attracts more people to make condition-based transactions. 

A large number of blockchain userbase is inclining towards Ethereum as it is the first blockchain to introduce smart contract features. Also, the Ethereum blockchain is more reliable in comparison to others. It allows users to make errorless and accurate transactions. 

On top of all these benefits, there are very rare incidents on Ethereum when smart contracts have been distorted. 

Ethereum in 2022

I’m pretty sure that Ethereum will definitely grow in 2022 and reach $10,000 in height. But, still, it completely depends on its liquidity and volatility. The most crucial factor that will decide the future of Ethereum 2022 is geopolitics. Yes, I agree that no one can control the matrix of the virtual network. But, nations with crypto critics can influence investors and can manipulate crypto investment. 

The world’s two most populated countries, China and India, are already pretending to put a stop to crypto. China already banned crypto mining activity and prohibited crypto transactions across the country. On the other hand, India is still in a state of confusion and not clear about crypto. After creating the dilemma of the ban in the last month, India has not passed a cryptocurrency bill at the end of the winter session. 

But there is good news also! In 2021, El Salvador announced Bitcoin as a legal tender, and following its footsteps, many other developing countries are also planning to accept crypto as a legal tender. 

Also read: Bitcoin expected to hit $100K Milestone in 2022

Other than geopolitics, Private startups, and business can also play a pivotal role in the expansion of Ether and other cryptos. This year many private businesses came forward to support crypto. 

So all I want to say is what is next you can’t predict in the case of Ethereum or any other crypto. Uncertainty is still revolving in the crypto market and it will be an uphill task for Ether to embark on a new milestone in crypto history. But it’s not impossible as Ethereum has the potential to dominate the crypto market. In the past, it has won the trust of many investors and crypto whales. So, I’m pretty sure that by the end of the next year, Ether will have great capitalization over the market and climb up to new ATH.

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