Expert panel makes wild $20,000 ETH prediction
Wild predictions and hyper-speculation are two of today’s trends that go hand in hand with the influencer-style world we live in in which Twitter users and Reddit board contributors are moving entire markets at the click of a keyboard and the typing of an opinion.
Perhaps, given this relatively new and incredibly disruptive dynamic, it is always worth taking many reports which project the future value of anything at all to be either unbelievably low or unbelievably high compared to its current and past performance, however today a prediction was made relating to Ethereum and its potential value in just four years time.
Four years may not seem very long in the general scheme of things, but in the fast-moving, ultra-innovative world of cryptocurrency, it is an epoch.
Since Ethereum climbed in value to over the $4000 mark recently, interest has gathered momentum and one particular panel of analysts has said that it may reach $20,000 by 2025, with the forthcoming upgrade in the form of ETH2 potentially pushing it even higher.
This particular panel consisted of 35 experts, including head economists of major venues has predicted that Ethereum will be the most widely transacted digital coin by the end of 2022, potentially overtaking bitcoin.
The sophisticated nature of the smart contract which is a technology in which Ethereum is in the lead is very much a contributor to the speculation regarding large potential increases in value, especially given the massively increasing popularity of DeFi, the process of using cryptocurrency technology to recreate traditional financial tools like loans and interest designed to replace the role of traditional financial institutions as intermediaries with blockchain-based protocols. This has given Ethereum a helping hand in climbing over the last year.
Panel member and University of East London senior lecturer Iwa Salami said: “DeFi, which is so far building an alternative financial system that is more accessible and democratised, is largely built through decentralised applications on the Ethereum network.
Certainly Vitalik Buterin, the creator of Ethereum, knew his potential when designing it in that particular way.
The history of DeFi defines its user experience in many ways. Thanks to the contributions of Mr Buterin and other community members, DeFi has grown from strength to strength, with its total value locked, rising from $1 billion in June 2020 to over $79 billion in 2021.
Given the massive opportunities that are now available to DeFi developers in reshaping the retail financial services market, the panel predictions are interesting material of which to take note.