The Future of Ethereum: a Look Into the Asset’s Expanding Horizons

Cryptocurrencies have garnered much attention in the investment world, with Bitcoin and Ethereum standing out as the two leading players in the market. While Bitcoin has gained significant recognition due to its features and is considered the king in the crypto space, Ethereum has succeeded to live up to high standards as well – in fact, it has some great advantages over Bitcoin.

Ethereum was introduced on July 30, 2015, and the project has become very successful since then. The first upward movement in eth coin price began later the same year, in October, showing its great potential in the crypto market. And even if prices have dropped since that time, investors still show optimism regarding the future of the digital asset, believing that it can still see a substantial rise similar to that one or bigger. Ethereum’s main innovation that sets it apart from other crypto projects out there is its use of smart contracts, which are transaction protocols that execute actions and events automatically based on the terms of an agreement.

Ethereum’s Expanding Horizons: How the Asset Evolved Beyond Financial Applications

Ethereum is mainly known for facilitating transactions, and making a difference in the financial world. But there is more than meets the eye regarding this incredible technology. Over time, Ethereum has evolved into a promising cryptocurrency, expanding its horizons beyond finance.

Ethereum can now be used as a store of value, to buy things, to access blockchain-based services, and so on. Let’s take a look at some of its most prominent applications.

DeFi

Ethereum has been such a game-changer for finance but its applications don’t limit to this industry only. The platform has a decentralized nature, and because of it, Ethereum can be used for many other purposes. DeFi, for instance, is one of the most common digital asset applications. The term DeFi is short for decentralized finance, describing a large ecosystem of financial tools running online without the control of any middlemen. DeFi has excellent potential, being referred to as a disruptive technology that can eliminate the need for third party legacy institutions and enable greater access to financial services.

Through its benefits, such as transparency, anonymity, custody, and lower fees, DeFi can increase trust, confidence and security in crypto-based transactions. While it presents some challenges, DeFi’s growth can indeed make a difference in the world.

NFTs

NFTs are a popular way to explore Ethereum’s applications beyond the financial world. Simply put, non-fungible tokens are unique and indivisible digital assets, meaning no other asset can replace them. Ethereum’s smart contract capabilities enable the development of unique tokens symbolizing different types of creative works, which are then stored on the Ethereum blockchain. This guarantees a transparent and safe way to verify the ownership and transfer of an asset.

Besides offering a platform where users can develop and trade NFTs, Ethereum also creates opportunities to establish royalties through digital assets, benefitting creators who can earn money from their digital works. All in all, NFTs and Ethereum have a symbiotic relationship: the latter offers an underlying infrastructure that powers the majority of the non-fungible tokens that currently exist on the market. As NFTs keep evolving, Ethereum will likely remain a prominent player in this market.

Sports Betting

Ethereum has also transformed the sports betting industry, enabling users to avoid centralized payment systems when sports betting with one another. This increases the security of the process, at the same time helping mitigate the risk of fraud or manipulation. Ethereum also plays a role in ensuring a faster settlement of bets, as well as increased efficiency and speed, having an advantage over traditional methods that lack all of these features.

When it comes to sport betting, Ethereum wins over Bitcoin. Those who have previously used a BTC sportsbook likely know what we mean — receiving a payment there can take around 20 minutes. By contrast, it only takes seconds to process payments on Ethereum betting sites. Plus, Ethereum is a more sustainable option than Bitcoin, using less electricity, which makes it better for the environment.

Ethereum Price Performance: Predictions Regarding Its Future Growth

Currently, Ethereum has a market value that accounts for US$199,915,285,186 and a trading volume of US$4,329,294,712. Although ETH hasn’t had the best performance in the past few months (in fact, its value decreased), that does not mean it doesn’t have any potential for future growth. In fact, investors are betting big on the digital asset, believing that its price will at some point skyrocket again.

While in 2018-2019, Ethereum experienced a long period of stagnation, it gained momentum in 2020 when Bitcoin halved. After the halving, altcoins in the market were dormant, while Ethereum started to move in a positive direction. As a result, its price increased significantly by the end of 2021, representing an all-time high for the cryptocurrency. However, after this moment, Ethereum went through a bear run the following year, and this downtrend still continues today.

So, what does this mean for the digital asset? Should we expect it to only go down from now on? If you’ve been into the crypto space for a while, you likely know how things work: price movements are normal, and it can be really hard to tell whether the market will become bullish or bearish. But there is still a lot to look forward to when it comes to Ethereum’s future. Ethereum is set on a path toward continuous development, with the upcoming upgrades aiming to make its network even more reliable for users. These improvements could play a role in boosting the price of the token.

Wrapping Up

Ethereum achieved success relatively quickly after its launch, becoming a go-to-network for creating and powering dApps, and establishing itself within DeFi markets. At the same time, it represents a universal cryptocurrency that can be used for many different purposes. While it is impossible to predict when Ethereum will hit an all-time-high once again, this digital asset has undoubtedly changed finance for good, and its impact will last for a long time from now on.