Experts make a wild forecast for ETH
Perhaps, given this relatively new and incredibly destructive dynamics, it is always worth taking a lot of reports that predict that the future value of anything at all will be either incredibly low or incredibly high compared to its current and past indicators. However, today a forecast was made regarding Ethereum and its potential value in just four years.
Four years may not seem like a very long time in the general scheme of things, but in the rapidly changing ultra-innovative world of cryptocurrency, this is an era.
Since the value of Ethereum has recently exceeded the $4,000 mark, interest is gaining momentum, and one particular group of analysts said that it could reach $20,000 by 2025, and the upcoming update in the form of ETH2 could push it even higher.
This particular group consisted of 35 experts, including the chief economists of the main sites. According to their forecasts, by the end of 2022, Ethereum will become the most widely used digital coin, potentially overtaking Bitcoin.
The complex nature of the smart contract, which is a technology in which Ethereum is leading, greatly contributes to speculation about a large potential increase in value, especially given the massive growth in popularity of DeFi, the process of using cryptocurrency technology to recreate traditional financial instruments such as loans and interest, designed to replace traditional financial institutions as intermediaries with blockchain-based protocols. This gave Ethereum an unprecedented boost in the ascent over the past year.
Iva Salami, a member of the commission and a senior lecturer at the University of East London, said: “DeFi, which are currently building an alternative financial system that is more accessible and democratic, are mainly built at the expense of decentralized applications on the Ethereum network.”
Ethereum is growing dueto DeFi and reasonable regulation
Of course, Vitalik Buterin, the creator of Ethereum, knew the potential of his project when he designed it in this way.
The history of DeFi largely determines its user experience. Thanks to the contributions of Buterin and other community members, DeFi grew, and their total value increased from $1 billion in June 2020 to more than $79 billion in 2021.
Given the huge opportunities that are now available to the developers of DeFi for the restructuring of the retail financial services market, these forecasts are interesting material that is worth paying attention to.
In addition, the price of Ethereum is growing, as regulatory measures increase investor confidence.
Over the past few months, investors have been very shrewdly assessing the market. When Elon Musk’s flash crash occurred in May, provoked by tweets, investors pragmatically and calmly bought Ether at low prices.
Thus, the mood of the investment community is a worthy measure of confidence, and given the interest of regulatory authorities that now surrounds the cryptocurrency and leads to actions, not just words, prices are rising, which means that most investors clearly see this as a positive moment.