The outlook is that Ethereum will hit $2,000, $3,000, $5,000, $10,000 and maybe $20,000 this year and if not, then Q1 next year, 2022.
Next year, there is also a small chance that it hits $40,000, but we don’t want to put the cart before the horse.
But why could all this happen?
There are 4 big reasons for that.
- Far back as 2018, Ethereum already overtook Bitcoin in adoption, and now has 3 times more daily transactions than Bitcoin (see above) and almost the same number of wallets as well
- The entire crypto ecosystem is running on Ethereum. Coins that have millions of users such as NEXO, Tether, UNI are running on Ethereum.
- It is possible that Ethereum will replace Bitcoin as the #1 coin in the market cap in 2021 or maybe next year. This has already almost happened in 2017.
Now, Ethereum has improved a hundredfold in terms of usage and money locked up while Bitcoin hasn’t changed much.
- The entire Defi landscape is running on Ethereum with already more than $23B (!!!!) locked up, up from $500M a year ago. Bitcoin has nothing against that, the tiny Lightning Network still only has a measly $36M in comparison.
Bitcoin only has the first-mover advantage and is resting on its laurels doing nothing while Ethereum is the hardworking newcomer that is better than Bitcoin in every way by the factor of 10.
Here is a screenshot of Defi Pulse from a year ago.
Here it is now.
Big times are ahead for Ethereum. However, the Ethereum network is also suffering from the scalability bottleneck, but second layer solutions are already seeing increasing adoption, so this crisis could be averted.