What factors will supposedly boost the Ethereum price by 5% in the future?

What factors will supposedly boost the Ethereum price by 5% in the future?

The crypto market is easily affected by factors like supply and demand but can also suffer from negative media coverage or poor investor sentiment. Of course, each cryptocurrency and its blockchains are influenced by different factors because each provides unique features that are more or less demanded or boosted throughout trending seasons.

However, Bitcoin typically has a say in crypto prices as it is the market’s first and most influential coin. The cryptocurrency determines the direction of each token because it’s highly demanded and has a value equal to fiat currency. That’s why analyzing Bitcoin’s condition is essential when making an Ethereum price prediction, for example because you can better understand the link between cryptocurrencies.

Experts believe that Ethereum’s price will increase by 5% in the next few years and reach around $4,260.21 by 2030. So, what are the factors that might lead to this improvement?

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The Bitcoin halving

The fourth Bitcoin halving emerged recently, and it’s been one of the most awaited events in the crypto world because it will change the investment dynamic for a while. Although miners will be most affected since their reward will shrink in half, investors and traders will benefit from increased prices, so Ethereum is the most targeted.

That’s because, during every halving, investors are looking to diversify their portfolios and prepare for Bitcoin to become scarcer, so they will choose reliable cryptocurrencies like Ethereum to support their portfolios’ growth. Therefore, Ethereum will receive another boost that can last for some time every four years, when the halving usually takes place.

Ethereum updates and news

Ethereum is committed to innovation, which is why the roadmap proposed by Vitalik Buterin, the creator of the coin and the blockchain, has been a buzzing subject in media and will continue to do so. The roadmap includes six phases in which Ethereum will develop into one of the best digital tools and coins concerning the following:

  • The Merge update has already been completed and made the switch from PoW to PoS, transforming the cryptocurrency into one of the most energy-efficient on the market;
  • The Surge has recently begun, and it will handle layer-2 solutions for making the network faster and transactions cheaper;
  • The Scourge will deal with decentralization concerns that appear in liquid staking pools, leading to censorship issues;
  • The Verge will improve efficiency and data storage security by introducing Verkle Trees;
  • The Purge will reduce the cost of network participation by making Ethereum more straightforward;
  • The Splurge will include all other minor improvements within the network;

Media coverage was massive since the start of the Merge, and it will continue as the roadmap carries on, so we’re expecting news to contribute to the growth of Ethereum’s price.


The emergence of Ethereum gaming

The Ethereum blockchain was the leading supplier for the beginning of a new era of gaming, as projects like CryptoKitties, the Sandbox, or Decentraland put the base of play-and-earn games with crypto. Integrating Ethereum as a tool and a means for payment in gaming sectors has been an important development for the industry, making Ethereum popular among developers. Ethereum provides users with a secure and transparent way for transactions to occur, while security is enhanced through blockchain and encryption.

Ethereum has also made it possible for NFTs to be leveraged in gaming, offering players unique items they can own, trade, or sell on virtual markets. Games like Axie Infinity allow gamers to play with NFTs in order to acquire significant returns.


Decentralized Finance applications

DeFi has been one of the most game-changing factors in determining Ethereum’s popularity because it supported the creation of a new way for finance to help people. Thanks to Ethereum, developers can create decentralized applications from scratch that allow users to access financial services freely and benefit from numerous economic features.

Some of the most well-known DeFi applications on Ethereum include Uniswap, a popular and trustworthy exchange, and Aave, a lending and borrowing platform that helps people earn interest by holding cryptocurrencies. The advantages of developing a DeFi app on Ethereum include elements like financial security and transparency, as well as access to liquidity and growth opportunities.

The global adoption of smart contracts

Smart contracts are what Ethereum is best at because they introduced a unique way for contracts to be deployed. They ensure speed, immediate execution, security, and accuracy, which are indispensable in today’s fast-paced world that relies heavily on technology. In other words, smart contracts make it easy for agreements between two parties to operate based on a computer code programmed that automatically seals the contract when both have done their part of the contract.

Smart contracts have been leveraged beyond the crypto world, being introduced in supply chain management, real estate, and insurance programs. Their technology can streamline any business process, generating more income and lowering human mistakes.

Why should you invest in Ethereum besides Bitcoin?

Although Bitcoin is one of the most reliable crypto investments, despite its high volatility, it cannot be fully leveraged independently, which is why adding Ethereum to your portfolio can increase its value exponentially.

Ethereum is still developing, but it has the potential to become Bitcoin’s equal in terms of importance and popularity because it offers more than just transactional features. Ethereum is an innovative tool through which modern developers can create almost anything that comes to their mind in a decentralized environment, benefitting millions of users and businesses. Creations like decentralized finance are helping people from developing areas access income resources without being hindered by the government.

Do you think Ethereum will grow by 5% in the future?

Experts anticipate Ethereum’s prices will spike 5% in the following years, as numerous factors can contribute to this. The Bitcoin halving every four years will trigger a price boost for all cryptocurrencies, while Ethereum’s continuous roadmap and smart contract function will push it toward the mainstream. Regardless, Ethereum is a unique crypto investment and asset because it offers both transactional features and means for development. 




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