Ethereum has had a great year thus far, it has gone up in value by about 440% and experienced a recent surge in December. We believe that there is a good chance it can reach the $4,000 mark by the end of the year.
In order for Ethereum to reach $10,000 next year, it would need to go up more than 150% putting the market cap at $720 billion. Whereas Bitcoins market cap stands a little below $900 billion. What are the chances that Ethereum will go up this 150%? One solution can be the Ethereum 2.0 upgrade that is on its way. Ethereum will also be transitioned from proof of work to proof of stake model. A significant increase in the use of the Ethereum blockchain can also help reach this milestone. It is already ranked as the most used blockchain for smart contracts.
Bad news for one or more of Ethereum’s main competitors might also help. A major security breach or extended outage for Cardano or Solana, for example, may drive developers to move to this asset.
What are the obstacles standing in the way?
There are various obstacles that can come in the way of Ethereum’s rise to $10,000. The general status of the cryptosystem must stay stable and strong. The Ethereum 2.0 upgrade’s shard chain phase has already been pushed out from 2022 to 2023. Any more major delays in the upgrade might prevent Ethereum from considerably increased in value in the coming year.
It’s also possible for Ethereum to lose ground to other blockchains if the upgrade isn’t delayed. There are blockchains that support smart contractions and offer faster transactions with lower gas fees. Don’t rule out the possibility of a significant security breach or long-term technical issues on Ethereum’s network. Only a few months ago, a bug in Ethereum’s software was discovered. It wasn’t the first time, and it probably won’t be the last either.
What are the odds?
From a historical perspective, this could indicate that the cryptocurrency’s chances of reaching the goal are rather good. The bigger a cryptocurrency gets the harder it is for it to grow. However, the conditions are in place for Ethereum to have another successful year. As new apps are created on the blockchain, billionaire Mark Cuban expects that it will be a huge winner in 2022. It’s possible that he’s correct. I believe Cuban may be correct. Even if he isn’t, it might provide investors with significant long-term profits.