Since its founding in 2015, Ethereum has skyrocketed nearly 153,000% to an all-time high price of $4,892 in November 2021. However, with the overall decline in the cryptocurrency market, the world's second most valuable digital asset now sells for $1,077 per token as of this writing.
Reaching $5,000 per token would equate to a 364% return from today, and it would mean a new peak price for this popular cryptocurrency. Let's discuss why that lofty target is possible, as well as what might get in the way.
As the first programmable blockchain, Ethereum introduced smart contracts to its network, something that Bitcoin doesn't have. A smart contract is a computer program that runs if certain conditions are met, allowing two unknown parties to interact and transact with each other, all without the need for a trusted intermediary. It was a fundamental breakthrough that resulted in Ethereum now being called the world's decentralized computer.
Whereas Bitcoin is solely just a peer-to-peer payments network, Ethereum has actually spawned real-world use cases. Decentralized applications (dApps) are being developed to disrupt a wide range of industries. For example, two popular categories of dApps include decentralized finance (DeFi) protocols and non-fungible tokens (NFTs).
In the DeFi world, services like Uniswap, a decentralized exchange for buying and selling crypto, and Compound, a savings and lending platform akin to a traditional bank, were gaining popularity before the recent crash. And although the market for NFTs has cooled significantly, the potential for this technology, particularly when it comes to things like digital authenticity and identity, is huge.
Unsurprisingly, Ethereum is the most popular blockchain when it comes to these budding use cases. It has the most active developers working on advancing the network, and in the crypto world, that is a key competitive advantage.
Reaching $5,000 per token would equate to a 364% return from today, and it would mean a new peak price for this popular cryptocurrency. Let's discuss why that lofty target is possible, as well as what might get in the way.
As the first programmable blockchain, Ethereum introduced smart contracts to its network, something that Bitcoin doesn't have. A smart contract is a computer program that runs if certain conditions are met, allowing two unknown parties to interact and transact with each other, all without the need for a trusted intermediary. It was a fundamental breakthrough that resulted in Ethereum now being called the world's decentralized computer.
Whereas Bitcoin is solely just a peer-to-peer payments network, Ethereum has actually spawned real-world use cases. Decentralized applications (dApps) are being developed to disrupt a wide range of industries. For example, two popular categories of dApps include decentralized finance (DeFi) protocols and non-fungible tokens (NFTs).
In the DeFi world, services like Uniswap, a decentralized exchange for buying and selling crypto, and Compound, a savings and lending platform akin to a traditional bank, were gaining popularity before the recent crash. And although the market for NFTs has cooled significantly, the potential for this technology, particularly when it comes to things like digital authenticity and identity, is huge.
Unsurprisingly, Ethereum is the most popular blockchain when it comes to these budding use cases. It has the most active developers working on advancing the network, and in the crypto world, that is a key competitive advantage.