Ethereum is the second largest cryptocurrency in the market with a dominance of 19.31%. It has a staggering market capitalization of $367 billion. Being the pioneer of the decentralized finance and smart contract technology, the blockchain enjoys a rank like none other in the market. While Ethereum is second to Bitcoin, its offering and technology is regarded to be much better than that of the king of the market with a phenomenal potential for growth. There is not much debate about the viability of ETH in the long-term as it is considered, without any doubt, a must-have investment in the crypto space.
What problems do ETH 2.0 solve?
The development team of the network is highly active with various upgrades being rolled out consistently. Ethereum operates with a Proof-of-Work mechanism – like most original cryptocurrencies. However, the PoW has been facing a lot of backlash because of its limitations pertaining to scalability and high energy consumption. The bull run of 2021 made it evident that Ethereum’s blockchain is not ready for a mass adoption as the network became highly congested. As a result, the network’s gas fees sky rocketed and transactions became very expensive.
The ETH 2.0 upgrade has planned various improvements to be brought in the network but the hallmark of it is the shift towards Proof-of-Stake mechanism. The PoS mechanism is expected to solve all major issues facing the network and boost its adoption. PoS speeds up the speed of transactions while offering lower fees at the same time.
The blockchain space had been under fire for its lack of environmental unsustainability. The market crash of 2021 was caused by environmental concerns. Elon Musk’s Tesla denounced Bitcoin for its energy intensive PoW mechanism. Ethereum’s shift towards PoS shows its ability to adapt to the dynamic and volatile market with its ever-changing needs and requirements. This will help the cryptocurrency stay on top of the market.
Is ETH 2.0 good or bad?
However, there are also some concerns regarding the new upgrade. Critics point out that ETH 2.0 may plummet the crypto towards its demise rather than to the moon. The ETH 2.0 along with another upgrade by the name EIP-1559 launched recently which was expected to lower transactions fees, are expected to disincentives miners – or stakers, once ETH 2.0 goes live. A large-scale effort to disrupt the cryptocurrency’s network by miner had already been experienced right before the launch of EIP-1559. Similar events may be seen after ETH 2.0 as scored miners try to sabotage the network.
Ethereum Price predictions
Ethereum has a strong footing in the market with an optimistic future outlook. If all goes according to plan, the changes brought by the new upgrade will further boost the value of the ETH token. According to the estimates of Wallet Investor, ETH is expected to be operating at a price level of $5,039 in a year’s time while the five-year price places the crypto at $13,413. Digital Coin Price predicts ETH will end the year at $4,498 and reach towards $11,167 by 2026.
