Get Into Cryptocurrency Trading Today

Bitcoin and ETH have both been rising in value significantly over the past few months. The price of Bitcoin has been rising since 2011, but it shot up about 300% in the past twelve months.

On the other hand, Bitcoin worst enemy has increased in price by about 900% in the same period. ETH was founded in 2015 and has added some useful features to the market. Because of this, many experts have predicted that Ethereum will overtake bitcoin and become the dominant cryptocurrency.

Cryptocurrencies Are Now Accepted by Traditional Firms

ETH is currently the second most valuable cryptocurrency, but it is likely to become the top cryptocurrency in the future. It outperformed bitcoin for most of 2021. The increase in the price of Bitcoin worst enemy is linked to the rising interest in cryptocurrencies.

One key reason for the increased value of ETH is the acceptance of cryptocurrencies by corporations such as Tesla. This has made cryptocurrencies more valid in the eyes of investors, and this naturally caused a spike in the price of different altcoins.

Decentralized Finance

Another notable reason for the rising price of Bitcoin worst enemy is the fact that it uses the decentralized finance system. This technology works like traditional financial institutions, but the middle man does not exist.

With decentralized finance, investors can make profits off of their cryptocurrency holdings. It allows users to borrow money, lend money, trade, and make investments, all without the need for a middle man.

ETH 2.0

ETH 2.0 was developed to address certain issues in the cryptocurrency community. Firstly, it will reduce transaction fees significantly.

This will make it a lot easier to make profits when using the decentralized finance system. It is worth noting that Bitcoin is very expensive to transact, and this can push investors to Bitcoin's greatest enemy.

ETH Mining Will Be Less Distractive to the Environment

ETH 2.0 also aims at reducing the environmental distraction caused by cryptocurrency mining. Instead of using the proof of work method of mining, ETH 2.0 will use the proof of stake system.

This will dramatically lower the amount of energy needed to mine ETH, and if successful, companies like Tesla may move to Bitcoin worst enemy. This might make ETH the leading cryptocurrency in the future.

ETH Futures

In 2022, ETH futures will be introduced, and this will allow investors to speculate the value of the currency at a specific date in the future. It is worth noting that the recent spike in the price of Bitcoin has been linked to investments from traditional firms.

With ETH futures, traditional investors may move to ETH, and this might lead to a significant rise in the price of bitcoin.

The Fall of Ripple

Ripple is the third-largest cryptocurrency, but it has declined in value because of a US SEC lawsuit. The result is that more investors have opted out of Ripple and are not purchasing ether instead. With increased demand, the value of ether is sure to shoot up over the next few months.

Investors Are Hoarding Ether

The CEO of ZebPay, a cryptocurrency exchange, has noted that investors are hoarding ETH, and this is causing a reduction in the supply of the altcoin. At the moment, about 3 million ETH are being held for speculation, and with lower supply, the price of ETH is going to go up.

However, this does not mean ether will overtake BTC as the shortage is being caused artificially. The altcoin has a market cap of $150 million, and $3.8 million worth of ETH is being hoarded.

Volatility in the Cryptocurrency World

Sharp increases in the values of cryptocurrencies are usually followed by declines in the markets. After the bull market of 2017, the price of Bitcoin fell by 85%, and ETH fell by 95%.

For this reason, investors have to be careful when entering the market at very high points. Even with this level of volatility, ETH is likely to overtake Bitcoin since it solves many issues related to cryptocurrencies.

First Mover Advantage

Bitcoin has been able to maintain the top spot in the cryptocurrency market, and this is large because it enjoys the first-mover advantage. Since there are so many cryptocurrencies available, investors are naturally sceptical about coins other than Bitcoin.

The first-mover advantage may end up keeping Bitcoin at the top of the market, even though it does not have many useful features.

ETH Has Many Real-World Applications

ETH is not just meant to provide financial services without traditional banks. The platform is also used to make smart contracts, and these can be applied in many sectors.

With this system, peer-to-peer lending is a lot easier, and investors can even make money from interest generated on their ETH holdings. With so many uses, investors have noted that it might surpass the $660 billion market cap of BTC.

Forecasts on the Price of ETH

By the end of 2021, the price of ETH is likely to be between $3500 and $4500, and by 2025, the price should have surpassed the $11,170 mark. Some experts have even suggested much higher prices, and these are based on past trends in the cryptocurrency market.

Since ETH has proven to be extremely innovative, more people are likely to transact with it, and that can make it overtake BTC in value.

Forecasts on the Price of BTC

By the end of 2021, the price of BTC is likely to reach $100,000, and many experts have predicted that it can surpass the $500,000 mark by 2025.

However, it is important to keep in mind that these predictions are based on the past behaviour of investors. More people may move to ETH in the next few years, and that can end up lowering the value of BTC. At the same time, ETH will rise in value because of the increased demand.

ETH vs Cardano

ETH is often compared to Cardano since both altcoins offer similar features. You can use them to make smart contracts and build programs. However, since Cardano was founded much later in 2017, it has not been able to attract many investors.

At the moment, one Cardano costs $2.82, and it has a market cap of around $90 billion. With increased awareness from investors, Cardano could achieve top crypto prices and join the ranks of ETH and BTC.

Invest in Cryptocurrencies Today

Cryptocurrencies offer excellent returns to investors, but you have to be careful when entering the market. You can create an account with us today so that you start trading with expert advice.

Buy & Sell Cryptocurrency Instantly