Ethereum has already established as a very powerful cryptocurrency over the past year, currently trading at $681,01 and having a total market cap of $67,5 billion. However, it has the potential of getting even bigger, as one analyst claims that it could rise to $2,500 had had a record-setting year in 2018.
“The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020,” said Nigel Green, founder and CEO of deVere Group, cited by CCN.
But what can take the price so high?
Nigel Green considers that there are three main factors which could influence the price of Ethereum. First thing first, there’s the increasing number of platforms that use Ethereum for trading. Secondly, the Ethereum contracts are expanding and, finally, there’s also the decentralization of cloud computing, which advantages the coin.
Currently, the regulation in cryptocurrency is almost inevitable, which will automatically attract greater investor protection, but also long-term market confidence.
Ethereum can already be considered the digital currency of choice for a lot of new token issuers, as its very efficient and flexible. As a side note, an ETH-based transaction takes just 14 seconds, while one made using Bitcoin requires as long as 10 minutes.
Analysts are still skeptic regarding the future of most coins
Despite being backed up by a lot of investors, as well as companies, analysts are bullish on cryptocurrencies in general and Nigel Green is no exception.
Most of them have been recording some serious gains lately and we’re looking forward to seeing more increases soon. “Current market activity indicates that the major cryptocurrencies are set for another considerable surge in prices gains in the near future,” Green said.
“What’s fueling this current rally in crypto prices? There are several key motivators,” he added. “These include the growing integration with and adoption by major banks and other financial institutions.”
What’s very interesting is that more than 20 percent of all financial firms are considering trading digital currencies in the next year, Ethereum being one of their top picks. Therefore, should we really expect a massive price increase soon? Only time can tell, unfortunately for a lot of investors.