Ethereum is on the verge of a one-time metamorphosis that will be remembered for decades to come. My conservative guess is that Ethereum prices will double over the next month and continue to climb higher and possibly faster than they ever have or will. I am not alone in my stance on the world’s largest decentralized financial ecosystem and (for now) second largest crypto asset.
Comparison of Ethereum and Bitcoin
I won’t say it will be bigger than Bitcoin, honestly they are two different coins with two completely different purposes and use cases. Bitcoin will always be Bitcoin and no coin, not even ether can take its place. Bitcoin is the most decentralized, unstoppable, unhackable and most importantly unbloatable place to protect your purchasing power, which will never exceed a maximum of 21 million BTC.
Ethereum 2.0 will be eco-friendly
While the argument for or against PoS vs. PoW is a topic that deserves its own report, if not dozens, the following that PoS has garnered is undeniable and will help Ethereum thrive in the future due to its eco-friendly consensus mechanism. The chart below shows the total number of Ethereum already committed to Ethereum 2.0 and shows that interest in Eth 2.0 has been growing steadily since 2020, regardless of the price action.
ETH 2.0
The Ethereum ecosystem and its role in cryptospace
Ethereum, on the other hand, is a virtual machine, a sort of engine “or brain” that powers the latest and greatest things crypto has to offer, a list that is constantly growing. Holding Ethereum is not so much an asset used as a hedge against inflation, but a bet on the future of finance and the endless use cases that have grown to support the Ethereum ecosystem.
These include NFTs, yield farming, smart contracts, decentralized finance, and inspired countless similar layer 1 competitive chains like Avalanche, Cardano, and Solana. Not to mention the many Layer 2 chains like Polygon, Arbitrum and Loopring AND the countless ERC-20 tokens running on Ethereum like Shiba Inu, USDC, Chainlink and over 4,000 others.
ETH Eco Coins
token dynamics
It should not be underestimated what this is likely to do to Ethereum. After the merge of the new Ethereum coins “Ether” which is currently 2 Ether per block. Over the past month, an average of 13,000 newly created coins per day have been issued to PoW miners, representing a 4.5% increase in Ethereum’s total supply per year.
After the merge, only stakers will be rewarded with new coins and the output will decrease 90% to just 1,600 per day! This has the real possibility of turning Ether into a deflationary asset. Assuming usage doesn’t decrease, the gas fees paid to the network and then burned could easily exceed the newly minted ether issued to stakers.
More efficient
The creation of Eth 2.0 will also increase transaction throughput by a much higher multiple while solving many of the scaling issues Ethereum has faced in its seven-year history.
Active Ethereum addresses are skyrocketing
I’ll end this article with a chart showing the number of active Ethereum addresses per day, note the rapid increase in transactions on the network since 2020, including the massive spike in July that reached nearly 1 million transactions in a single day ! This clearly shows the support and momentum that has been building in anticipation of this once in a lifetime event.
ETH Active Addresses
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