The second-largest cryptocurrency might reach even higher summits, according to strategists from Fundstrat Global Advisors. They envision a bright future for Ethereum by predicting a five-digit price tag.
According to a recent Bloomberg report citing Fundstrat Global Advisors LLC, the largest altcoin could multiply its value seven times.
Analysts at Fundstrat consider this week’s rise of ETH as a sign that it may even jump to the five-digit scale. Strategist David Grider affirms that one of the main reasons for possible ETH price increase steps on the popularity of the Ethereum blockchain for decentralized finance applications.
Predictions also state that Ethereum has made some progress towards a network upgrade, which might allow it to process a transaction number close to the ones of Mastercard Inc. and Visa Inc. Namely – the Ethereum 2.0 transition.
Grider described the digital asset as “the best risk-reward investment play in crypto.” He added that the future of cloud technology might depend on blockchain computing. However, some of the risks which need to be considered include setbacks for the ETH 2.0 network upgrade or an eventual crypto bear market.
The analysts also pointed out that decentralized finance (DeFi) is convenient because it enables users to lend and borrow funds without the necessity of traditional intermediaries as banks, for example. In this line, many DeFi applications run via the Ethereum blockchain.
As per the strategists, enthusiasts believe that as time passes by, digital coins are maturing and turning into an asset class. In contrast, detractors tend to remain prone to rampant speculations and significant volatility.
Amidst recent tumultuous behavior in the cryptocurrency market, ETH also experienced its highs and suffered its lows. However, the asset managed to reach an uncharted territory grasping an all-time-high of above $1,430. As CryptoPotato reported, Ethereum experienced an impressive 30% weekly surge during the last couple of days.
At the beginning of 2021, ETH started with a price tag of around $740. Following were a few ups and downs, after which the asset managed to reach its ATH.
Reasons for the latest surge vary. Still, the recent increase in decentralized finance might be amongst the most influential of all. Since April 2020, the total value locked in the number of protocols has increased by about 4,500%, up to $25 billion.