Ethereum is the best-known altcoin, and it’s more than just another cryptocurrency for many investors and enthusiasts. And according to experts, its value could increase by 400% in 2022.
Ethereum’s native token, Ether (ETH) has grown tremendously in value since its inception. Launched in 2015 by computer programmer Vitalik Buterin, the price of Ether has risen from $0.311 when it launched in 2015 to around $4,800 at its highest level late last year – with lots of volatility along the way.
Although the price of Ether has experienced large swings lately, it still represents a lifetime return on investment (ROI) of over 700,000% at the time of writing. A differentiator for Ethereum – unlike Bitcoin and other cryptocurrencies – is its usefulness as a software network that allows developers to build and power new tools, applications and NFTs.
The blockchain-based software network has many uses and applications in the tech world, including games, music, entertainment, and decentralized finance (DeFi) – making it one of the most popular cryptos and the most used last year.
At an annualized rate, Ether’s ROI is nearly 300%. This means that early investors have nearly quadrupled their investment every year since the summer of 2014. Cryptocurrency prices are notoriously volatile, however, financial experts say to only invest what you can afford to lose, and never at the expense of basic goals like emergency savings and paying off high-interest debt.
How high do experts expect Ether price to climb? Here is an overview of the factors that contribute to the volatility of the price of Ethereum, but also to its surge, and what experts predict for this year.
Ethereum Price Predictions
We asked three experts how high they see Ethereum going this year, and each qualified their predictions by saying that it is nearly impossible to predict the future price of Ethereum. And other experts have said that the price of ETH will be even more volatile than Bitcoin in the coming months, mainly because Ethereum is upgrading its technology to a less power-hungry version that insiders call colloquially “Ethereum 2.0“. Ethereum’s upgrades could make it more attractive and durable for widespread use, but in the meantime, experts are waiting to see how investors and companies building their technology on the Ethereum platform react to the changes.
Considering these factors, here are some predictions on what to expect from Ethereum price this year:
Financial planners suggest investing only 1-5% of your overall portfolio in crypto. Despite its growing popularity, the cryptocurrency market is extremely volatile and prices can fluctuate rapidly overnight.
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Despite the difficulty of predicting the price of a volatile cryptocurrency, the experts we spoke with generally agree that ETH could cross the $4,000 mark again in 2022. And a recent prediction on the Ethereum by Bloomberg analyst Mike McGlone predicts that Ethereum will end the year between $4,000 and $4,500.
But how far could he go from there? This will depend on several factors that could contribute to its long-term value.
Cryptocurrency news site Coinpedia predicted ETH could end 2022 in the $6,500-7,500 range if the same bullish run that began in mid-2021 were to continue. However, the year 2022 has brought a bearish pullback to the cryptocurrency market, making it clear that the price of Ethereum is not going to rise on sentiment alone. The blockchain now faces considerable competition from similar platforms filling its gaps while the Ethereum team works to transition to its second generation updates.
“Ethereum was the only show in town,” said Henri Arslanian, global head of cryptocurrencies at professional services firm PwC in a Jan. 12 post. episode of CoinDesk’s First Mover. But for the price of Ether to continue to rise, investors will need to see improved demand and functionality.
“I believe Ethereum can go up to $8,000,” Ian Balina, an investor and founder of cryptocurrency research and media company Token Metrics, told NextAdvisor. “Ethereum is the clear leader, but other blockchains are onboarding new users at a faster rate due to Ethereum’s high gas fees and low transaction speed. »
Coinpedia predicts an even higher price of $12,962.33 in 2022 if Ethereum’s upcoming transition to Ethereum 2.0 is successful. The new upgrades could potentially make Ethereum more affordable for users to mint and develop products, as currently the service fees to use Ethereum are notoriously high.
The future of Ethereum
Despite competition from Ethereum and other factors contributing to its continued volatility, there is a general sense of optimism that the original smart contract blockchain will make it through this era of testing.
“Ethereum owns over 90% of the NFT market,” Arslanian said. “This is going to be a very important year for Ethereum, kind of a breakthrough year. »
There are good reasons to expect a quick rebound from the current Ethereum crisis, Zannos told NextAdvisor.
“What I think Ethereum has is this community momentum that allows a group of very smart people to create innovation and see new opportunities,” says Zannos. “Basically, my optimism has to do with the versatility of what you can do with Ethereum. »