Ethereum is currently struggling to bounce back to its three-months-high of $281 in February 2020. However, experts have a strong hope that the digital asset will be the coin of the year ahead of all the popular assets.
The cryptocurrency has never been the same again after its early 2018 market bull-run. For some reasons, its response to price change has been a little slower since that impressive run, and failed to move with a huge margin when Bitcoin increased by over 50%.
Despite all these downsides, Ethereum is very popular among the various cryptocurrency predicting websites. According to CoinSwitch, Ethereum will probably finish the year with a trading price of $1449. This is a bit too much when its current price and rate of price change is considered. However, anything is possible in the world of cryptocurrency.
Bobby Ullery, a cryptocurrency expert also showed a strong belief in the Ethereum technology and explained why the digital asset can be the coin of the year. In his analogy, the cryptocurrency market capitalization will take a significant step to reach over $1 trillion in 2020.
The major contributors would be Bitcoin and Ethereum, making up to 25% of the total market cap. This means Ethereum would trade around $11,375 by the end of the year.
The global pandemic seems to have hit the cryptocurrency market very hard, but Ethereum is still making incredible progress in its adoption. The rate of adoption affects the price in the long run. In fact, its decentralized applications (dApps) recorded 1.4 million active users in 2019, better than its 800,000 users recorded in 2018.
Also, the ETH 2.0 project is another factor that can do magic. The project expected to be launched this year will have an impressive impact on the price as the team seeks to transition from proof of work to proof of stake. In addition, block validators will be required to stake 32 ETH in a bid to stake on the network instead of maintaining mining rigs.
This will likely cause a spike in demand and eventually push up the price. Also, it is possible that investors and miners who seek to benefit about 5% to 18% staking will hold their assets till the launching of the ETH 2.0, and the investors’ behavior will be a massive gain to the market performance of the digital asset.
In addition to the project adoption, Ethereum has gathered enough momentum over the year in preparation to stage a positive upshot.