If you are involved with cryptocurrency, you know that the next big name after bitcoin is Ethereum. It has a strong community and its slowly gaining food hold in the crypto market. All the investors are expecting great returns for their investments from this particular altcoin. 2024 is a big year for ether which is Ethereum’s native token.
Experts have predicted a significant rise in this particular currency’s value even though it might face significant volatility. In this article, we will be talking about the fluctuation and price of the currency and how high it can possibly go in 2024. We will be talking about the price predictions as well as the factors that directly impact the market value.
What is Ethereum?
The simple answer is of course that Ethereum is a cryptocurrency with the native coin Ether. Much like other altcoins in the market, Ethereum saw plenty of price fluctuations in its market value up until last year when it reached its peak. This digital currency was introduced in the year 2015 and the highest value it attained was 4800 dollars.
Much like any other altcoin, this is a blockchain network which includes many other factors of decentralized finance. Ethereum specifically has wide reaching applications in technology, entertainment and music. Even though investors have been witnessing high price volatility with this particular currency it also provides them lifetime ROI or return on investment.
Apart from being used as a cryptocurrency, it is also highly advantageous for programmers who want to develop new apps or non-fungible tokens on the software. With about 300% of ROI, this community is seeing exceeding participation from investors around the globe. If you would like to know more about ETH, we would recommend that you visit this website.
High Price Fluctuations
Now that we have mentioned the annualized return on investment (300%) along with price volatility it is time to jump to price predictions for the year 2024. Exports are largely divided on how this digital currency will fare in this year. One thing they agree on is that the investors can expect high price volatility in the future, especially if compared to Bitcoin.
The reason why these fluctuations might be common in this year is because Ethereum is undergoing some major changes in its technology. These changes are aimed at making the technology into a more accessible and less energy consuming version.
When changes occur, there will be a significant number of upgrades for the investors and institutions. All the developers who have been using the network to build their own tools and apps would then have to adjust with the new platform. These changes can impact the price to a great degree.
How High Do Predictions Go?
The previous year already saw Ethereum reaching its peak at 4800 dollars. The primary prediction of experts is that the value can easily reach the range of 4000 to 5000 dollars. Even if the prices do not hit the peak, they are likely to cross the threshold of 4 Grand. Well this is a general prediction, it will still depend on multiple factors which contribute to this rise in value.
If you think that Ether can reach a higher value, you are not alone. Some experts believe that this year can lead this digital currency to hit a new peak which can be anywhere in the range of 6000 to 8000 dollars. Of course, one has to factor in all the price fluctuations in the crypto market. There is already significant competition in the crypto market even as Ethereum works to upgrade its platform.
As it becomes more popular and the demand increases, the supply is likely to be limited which will increase the price. While experts believe that this digital currency will end this year on a high, there are significant challenges to overcome in terms of gaining more investors. The competition and the market is slowly gaining traction because it offers lower gas fees and better speed of transaction than Ether does.
Now, let us come to a prediction which many people would not have thought of. Some exports are of the opinion that Ethereum can easily cross that 12000 dollar threshold. However, this prediction is only based on how well the new upgrade will be received by the masses. With the change in technology, this platform is supposed to become more affordable and accessible for both developers and investors. It will also effectively overcome the problem of the high service fees that this currency currently charges.
Factors Impacting Price
Whenever we talk about any kind of digital currency, there are multiple factors involved that impact its price volatility. The blockchain network of etherium uses smart contracts for smoother decentralized finance transactions. There are multiple variables that influence the price of cryptocurrency. Some of them are:
- High traffic usually means that more and more people are interested in a particular blockchain network. For Ethereum, however, this has driven the transaction fees up and can possibly drive the popularity of this currency south.
- Increasing competition which offers better financial alternatives to investors is another way in which the price of this digital currency might fluctuate.
- There is a first-mover advantage on this network which makes investors more likely to stay interested for a long period. It is also a community of both developers and investors which can drive the price forward.
We have just talked about the different factors which influence the community and staying invested in a particular digital currency. Apart from them, one also needs to consider how the Ethereum upgrade will do with the developers and investors. Experts have predicted different ranges in which the price can fall depending on their technology upgrade.
Increasing competition is a significant challenge but the high return on investment and first movers advantage are essential features to make Ether fly high in 2024. Whatever the case may be, one also needs to be prepared for price volatility.