Ethereum, the smart contract platform with the largest market cap and the second-best cryptocurrency in the market by performance, has investors from all walks of life exploring and placing their bets on the asset. For Ethereum has its fair share of investors deeming it the crypto with the most potential to bring ROI, or at least beat other crypto coins, it’s safe to say that this forerunner of smart contracts is to be both envied and feared – depending on your position regarding it.
Since all the news in the financial area is about Bitcoin and Ethereum these days and Bitcoin’s fourth halving that occurred in April of this year, brushing the latter aside is anything but a savvy move. As far as the 2024 and 2025 predictions for Ethereum’s price are concerned, expectations are that Bitcoin’s most current halving will have a beneficial impact on Ethereum and investors keeping faith in it. Some would go as far as betting on a $6,600 valuation seized by September of this year, meaning more than a twofold, as Ethereum is now inclining towards a new $4K level.
The halving mainly targets Bitcoin – or, at least, technically speaking. Miners indeed receive half the reward they would gain for mining Bitcoin, transforming this undertaking into a less profitable venture. Not only has Bitcoin historically hit new all-time-highs after previous recompense reductions, but the rest of cryptocurrencies also registered price hikes. This time, Ethereum is expected to be one of the largest beneficiaries of its competitors’ protocol reenactment besides the obvious legatee, entering a different growth trajectory.
So, what kind of swing are crypto analysts talking about? How can Ethereum level up after the halving, and why should you care?
Logically, the second to slump from the halving would be Ethereum
Reasonably, Bitcoin carries the most considerable weight in the crypto world, being the unbeatable player that all the other cryptos look up to. As the tenor dictating how other crypto assets’ performances move, it’s straight-thinking that the halving is unlikely to leave any crypto asset unimpacted. However, since Ethereum remains the go-runner in the said competition, an unparalleled benefit witnessed by this mammoth remains insightful. The first cryptocurrency to take advantage or slump from the upcoming upgrade in Bitcoin is rationally Ethereum, point where everything takes a somewhat expected turn.
Ethereum is to continue its healthy performance, or go even bigger
The last few days were notable for the second-best crypto as it saw the ambitious $3.5K exceeded. It’s witnessed daily price spikes surpassing 2% and noteworthy weekly chart spike registrations already, all the assumptions hinting at an even better performance after May ends.
Evidently, colossal growth is not that straightforward, as nothing in the crypto world follows well-shaped rules. This is where many enthusiasts turn to various price prediction tools, such as OpenAI’s ground-breaking ChatGPT platform, to gain a clearer picture of what they should prepare for.
ChatGPT can’t make precise estimations and should never be the primary motivation behind an investor’s decisions – nor should anyone make investments based on crypto charts, the Fear&Greed Index, media headlines, FOMO, or other related tools. However, it’s only insightful to give a thought to Ethereum in the context of the following halving, especially since a 2.0 proposal is on its way to cementation.
Considering historic charts and the chatbot’s predictions, a reasonable price range for the smart contract machinist could fall between $8K and $12K. The present assessment, however, is built on previous price trends and historical charts, as well as on the overall expansion tendency of the crypto industry and Ethereum’s well-known position as the foremost smart contract app.
Best-case scenario, ETH could experience an inestimable price growth on the back of increased institutional investment, broader dApps adoption, and the triumphant realization of the subsequent Ethereum 2.0 upgrades. All these will lead to heightened scalability and lower transaction costs for users, repositioning Ethereum as a colossal player in the crypto market.
However, the halving will be helped by Dencun in catapulting Ethereum
Ethereum isn’t of age yet – its upcoming upgrade will imbue it with responsibility. Ethereum is on its way to strengthening its Ethereum 2.0 proposal with what’s momentarily the most colossal deployment to date, namely the Dencun upgrade. For those late to the game, making sense of the eagerly awaited event can help them create a rapport with the asset to gain a clearer picture of the asset’s role and stature in the crypto market.
Despite being the harbinger technology of the rising smart contract and revolutionizing the financial system with the displacement of third parties validating transactions for fees, we would overestimate it by calling it the best such network. Ethereum saw its greatness overshadowed by smart contract networks such as Avalanche and Solana, which, surprisingly enough, transformed into an enrooted practice discrediting the behemoth. However, analysts and sagacious investors know that a dawdling had to take place, given the enormous traction gained in a relatively short time by the network. While somehow anticipated, the prominence of Ethereum exceeded a few expectations, bringing about the desideratum of catching up.
The past Dencun upgrade scheduled that took place in March, as the project’s team had previously announced, can be compared with its coming of age. Ethereum is already one of the safest and best smart contract networks, boasting the largest market cap to date, but the room for improvement that will be tackled will open a new era for the platform. It’s anticipated to increase transaction speeds and overall throughput with it while reducing user fees. Solving such pressing problems, Ethereum could see new interest infused in it, having more investors gain confidence in the long future Ethereum has ahead and its ubiquity. Adding the halving-triggered increased interest in the sector, it’s only evident that the news is all good for the asset. As Grayscale representant stated, the Ethereum ecosystem is on the brink of being reborn into a stronger competitor, seeing its durability and endurance grow to unmet levels.
Closing thoughts
As you likely see, this year’s concluded halving keeps making a lot of noise and has investors’ confidence reinforced in Ethereum. If you’re considering investing in the second best crypto asset, make sure to conduct your research strategically and unbiasedly.
