Ethereum: Cryptocurrency price figures spike overnight
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US banking corporation Goldman Sachs has dubbed ethereum the “Amazon of information”, predicting its value will skyrocket until it eventually dominates the market and takes over its original rival and top spot contender, bitcoin. The leaked information was posted on Twitter, a hub for crypto experts and investors alike. Goldman Sachs analysts wrote: “Given the important of real uses in determining the store of value, ether has a high chance of overtaking bitcoin as a dominant store of value.”
They added: “The ethereum ecosystem supports smart contracts and provides a way to create new applications on its platform.”
Ethereum’s price has far outweighed the value of bitcoin over the last year or so, with ETHER adding around 1,000 percent compared to bitcoin’s 300 percent – even when last week’s crash is considered.
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Goldman Sachs added in the report: “Most decentralised finance (DeFi) applications are being built on the ethereum network, and most non-fungible tokens (NFTs) issued are purchased using ether.
“The greater number of transactions in ether versus bitcoin reflects this dominance.”
Some analysts even predict that long-awaited upgrades to ether, which started at the beginning of last year and are being designed to help the crypto coin scale and reduce its sky-high transactions costs, could help the currency reach never-before-seen highs.
Kosala Hemachandra, the chief executive of MyEtherWallet, said: “Unlike bitcoin, ethereum is not just a value token, meaning it actually fuels all use cases built on top of the ETH blockchain.
“Bitcoin is simply a value token with no clear roadmap. Even with the price plunge, long-term development is unaffected and ethereum is will on its way to market dominance over bitcoin.”
In terms of what ethereum will be worth in the near future, it’s looking positive.
Finder’s latest Cryptocurrency Predictions Reports, based on a survey of 35 well-respected investors and experts, forecasts an end-of-year price of $4,512 (£3,194.56) for ether.
By 2025, the panellists predict an average price of $19,842 (£14,048.43), and they agreed with the notion that ether will dominate the crypto market.
In total, 51 percent of the experts said ether, not bitcoin, will be the most widely used digital currency by as soon as the end of 2022.
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University of East London senior lecturer Dr Iwa Salami gave an end-of-2025 forecast of $20,000 (£14,161.50).
She said: “Decentralised finance, which is so far building an alternative financial system that is more accessible and democratised, is largely built through decentralised applications on the ethereum network.
“These developments indicate the future of finance and are very promising.”
BitBull Capital chief operating officer Sarah Bergstrand went even further with her ether prediction, forecasting it to reach highs of $100,000 (£70,798.50) by the end of 2025.
Ms Bergstrand said: “We are likely to see major upgrades to the ethereum network this year, and those can be expected to push the price higher.”
But Alpha5 CEO Vishal Shah predicts ether will be worth just $4,000 (£2,832.26) by 2025, less than what it was trading for on Tuesday.
He told Finder: “ETH should continue to perform, but it simply does not have the same scarcity benefits as BTC (bitcoin).
“Further, ETH is in a race against other protocols to overhaul its usability profile – there are faster, cheaper chains that are gaining traction and will likely rival ETH in the long run.”
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