Cryptocurrency experts, inspired by the growth of the second most popular digital asset, predict a rise in Ethereum to $500. However, the digital currency may also decline despite good prospects and a surge of interest in ETH.
Since the beginning of this year, Ethereum has advanced by 220%, surging from $130 in January to $430 in August. During the COVID-19 pandemic, ETH growth was put on halt, but then it gained momentum again. According to analysts, the second most popular digital currency has every chance of hitting $500 by the end of this year. The potential take-off of a virtual asset is favored by a number of factors, including enormous enthusiasm of crypto investors.
Experts are sure that active development of the Decentralized Finance (DeFi) will prompt the growth of Ethereum. Decentralized Finance system includes a number of services and applications that allow users to directly work with cryptocurrency. Currently, the turnover in this sector is $8 billion and it continues to expand. Most of the DeFi protocols are run through the ETH platform which makes the digital asset more and more expensive.
Another reason for Ethereum to rise in value is the major upgrade of its blockchain network in 2021. After the upgrade, users will be able to increase the amount of ETH coins by storing them in the wallet without much effort. Notably, most of the DeFi applications run on the Ethereum blockchain network. That is why the number of transactions and the size of commissions have increased significantly. Over the past 2.5 months, the average commission fee on the ETH network has skyrocketed by 1,600%.
Ethereum has long remained undervalued, but now it is the time for it to shine. Increasing popularity of the DeFi projects has largely supported the altcoin, and this scenario may continue in the future. Many crypto market participants see ETH as the main investment vehicle for the next two to three years. This trend is gradually gaining momentum.
