ETH, the second most popular cryptocurrency after Bitcoin, represents market capitalization of 20% of the $1.1 trillion international crypto market.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, has been a significant player in the digital currency landscape since its inception in 2014. Founded by Vitalik Buterin, Ethereum’s vision extends beyond just enabling secure virtual payments, as it aims to create a decentralized global software platform. As the native cryptocurrency of the Ethereum network, ETH is used for various purposes, including as a digital currency, investment, and store of value.
Overview Of ETHR (ETH)
| Name | ETHR (ETH)n |
| Type Of Currency | Altcoin |
| Current Price | $3,840.62 |
| Market Cap | $463,562,508,016 |
| Volume (24 hours) | $18,064,368,421 |
| Total Supply | 120,134,874 ETH |
| All Time Low | $0.4209 |
| All Time High | $4,891.70 |
| Founders | Vitalik Buterin, Gavin Wood and others. |
| Whitepaper | https://github.com/ethereum/wiki/wiki/White-Paper |
| Website | https://ethereum.org/en/ |
The Ethereum (ETH) blockchain network and its native cryptocurrency have been at the forefront of digital finance, powering transactions and serving as a versatile asset. As ETH continues to play pivotal roles from a store of wealth to facilitating exchanges and serving as collateral, its future price is a topic of high interest, especially for those looking into investing in Ethereum after Fox and Greed showing bullish trend.
In this article, we will delve into the
- History of Ethereum and ETHR (ETH),
- Exploring its functionality,
- Current market trends,
- Historical price analysis,
- Recent news
- ETH price prediction
What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It is the second-largest cryptocurrency by market value and is often referred to as the “world computer” due to its ability to execute complex programs and automate various tasks.
Ethereum is most commonly known by investors for its native cryptocurrency, ether (ETH), and by developers for its use in blockchain and decentralized finance application development.
Key Features Of Ethereum
The Ethereum network has four main features. Let’s get into the technical details of them for you.
Smart Contracts: Ethereum’s core feature is the ability to execute smart contracts, which are self-executing contracts with the terms of the agreement written directly into lines of code. These contracts can automate various tasks, such as the transfer of assets or the execution of specific actions, without the need for intermediaries.
Ethereum Virtual Machine (EVM): The EVM is the runtime environment for smart contracts in Ethereum. Smart contracts are written in high-level programming languages like Solidity and then compiled into EVM bytecode. EVM is an environment that enables execution of the code of smart contracts, ensuring that the code runs consistently across all nodes on the network.
Ether (ETH): Ether is the native cryptocurrency of the Ethereum network. It is used to pay for the computational power required to execute smart contracts and is also used as a form of payment for various services within the network. Participants, known as miners in a Proof-of-Work system, receive ETH as compensation for validating transactions and executing smart contracts.
However, transactions and smart contract executions require a computational resource known as “gas.” Users pay gas fees in ETH to compensate miners for their computational efforts. This mechanism prevents network abuse and ensures efficient resource allocation.
Ethereum 2.0: Ethereum does what it says. The network continuously evolves to enhance scalability, functionality, and transparency. The upgrade from Ethereum 1.0 to Ethereum 2.0 is a testament to its commitment to innovation.
How Does Ethereum Work?
Ethereum uses a blockchain, which is a distributed ledger. Information is stored in blocks, each containing encoded data from the block before it and the new information. This creates an encoded chain of information that cannot be changed. Throughout the blockchain network, an identical copy of the blockchain is distributed.
Each cell, or block, is created with new ether tokens awarded to the validator for the work required to validate the information in one block and propose a new one. The ether is assigned to the validator’s address.
Once a new block is proposed, it is validated by a network of automated programs that reach a consensus on the validity of transaction information. On the Ethereum blockchain, consensus is reached after the data and hash are passed between the consensus layer and the execution layer. Enough validators must demonstrate that they all had the same comparative results, and the block becomes finalized.
Ethereum Consensus
Ethereum initially used a Proof-of-Work (PoW) consensus mechanism, similar to Bitcoin. Miners compete to solve complex mathematical puzzles to validate transactions and create new blocks, earning rewards in the form of ether and transaction fees.
In September 2022, Ethereum transitioned to a Proof-of-Stake (PoS) consensus mechanism through the Merge upgrade. In PoS, validators stake their ether to participate in the consensus process and earn rewards for validating transactions and creating new blocks.
Real-World Applications Of Ethereum
Ethereum, a decentralized blockchain platform, has a wide range of real-world applications that extend beyond its role as a digital currency. Here are the most notable ones for you.
Decentralized Autonomous Organizations (DAO)
DAOs are created on Ethereum. Smarts contracts run decentralized autonomous organizations. The rules and regulations for using DAOs are encoded within one or several smart contracts, hence the community makes all decisions through a voting system.
Basically, a DAO allows you to control an organization without having a hierarchy in place, with complete transparency over structures and rules. A DAO also offers equal opportunities for all its members, regardless of how long they have been part of the organization.
Decentralized Finance (De-Fi)
De-Fi is a global and open alternative to traditional finance. Ethereum provides the perfect infrastructure for De-Fi. Built on Blockchain, De-Fi applications are immutable, transparent, secure and reliable. Using Ethereum’s programmability to automate complex financial processes without intermediaries, De-Fi’s can compete in the market with an edge.
Smart Contracts
Ethereum is widely known for its smart contract functionality. Smart contracts are self-executing agreements with predefined conditions that automatically execute and enforce the terms when the conditions are met. This technology has applications in finance, real estate, legal, and supply chain management.
Non-Fungible Tokens (NFTs)
Ethereum is the primary platform for creating and trading NFTs, which are unique digital assets. NFTs have gained popularity in the art, gaming, and entertainment industries, allowing creators to sell and protect their digital works.
Initial Coin Offerings (ICOs) and Tokenization
Ethereum has been a popular platform for hosting ICOs, enabling projects to raise capital by issuing tokens. It has also been used for tokenizing real-world assets like real estate, art, and stocks, making them easily tradable on the blockchain
Supply Chain and Traceability
Ethereum’s blockchain can be used for supply chain management to provide transparency and traceability. This is particularly useful in industries like agriculture, where the origin and quality of products can be tracked securely.
Identity Verification
Ethereum can be utilized for secure and decentralized identity verification. This can help reduce identity theft and provide individuals with control over their personal information.
Voting Systems: Ethereum-based systems can enhance the security and transparency of voting in elections and decision-making processes.
Gaming
Ethereum can be used to create in-game assets, tokens, and virtual economies, enabling players to have true ownership of their digital items.
Current Price Analysis
As of the writing this, the price of ETH is $3,840.62, a change of -2.24% over the past 24 hours. Several factors have accumulated to the price action in Ethereum, including the ongoing transition to a proof-of-stake mechanism, the growing adoption of decentralized finance (DeFi) applications, and mainly ETH ETF approval by SEC on May 24, 2024.
Find below the chart shared by coinmarketcap.com displaying the current price scenario:
Major Past Events Effect On Ethereum Price
Ethereum’s price has been influenced by several significant events over the years. Here are some of the most notable ones:
- Initial Coin Offering (ICO) in 2014: Ethereum’s ICO raised approximately $18 million in BTC, with each ETH priced at $0.31. This marked the beginning of Ethereum’s journey as a cryptocurrency.
- Mainnet Launch in 2015: The Ethereum mainnet launched in July 2015, marking the beginning of the Ethereum network. The price at this time was $1.42.
- DAO Hack in 2016: The DAO hack, which occurred in June 2016, led to a significant drop in Ethereum’s price. The hack resulted in the loss of approximately $50 million worth of funds, causing a major split in the Ethereum blockchain, resulting in the creation of Ethereum Classic.
- 2017 Bull Run: Ethereum’s price surged in 2017, reaching a peak of $414 in June. This was largely driven by the cryptocurrency bubble, which saw many cryptocurrencies experience significant price increases.
- 2018 Bubble Crash and Correction: Ethereum’s price fell sharply in 2018, losing 84.8% of its value. This was a result of the cryptocurrency bubble bursting and the market correcting itself.
- 2020 and 2021 Price Recovery: Ethereum’s price recovered significantly in 2020 and 2021, reaching a new all-time high of $4,379 in February 2021. This was driven by renewed optimism and increased adoption of the Ethereum blockchain.
ETH Price Prediction 2024, 2025-2030
Based on the current market trends and historical analysis, it is difficult to predict the exact price of ETH for the next five years. However, considering the growing adoption of DeFi applications and the increasing use of ETH as a store of value, it is likely that the price of ETH will continue to rise.
One possible scenario is that ETH could reach $5,000 by the end of 2025, driven by the growing demand for DeFi applications and the increasing use of ETH as a store of value. Another scenario is that ETH could reach $10,000 by the end of 2027, driven by the continued adoption of decentralized finance and the increasing use of ETH as a store of value.
However it’s worth finding out how ETH ETF approval will impact the future price. Let’s go through the ETH price prediction from 2024 -2030.
ETH Price Prediction 2024
The market finally takes a bullish trend since ETH ETF approval, which is the main driving force behind the rise of price. There are several talks in the market igniting the hope of continuous rise in Ethereum price, however some experts are drawing comparisons between Bitcoin ETF and ETH ETF.
According to Coingape, Ethereum Price is expected to skyrocket in 2024. The highest forecast for ETH in 2024 is $3,717.68 and the lowest at $3,104.19. It is anticipated that Ethereum price will be at an average price of $3,410.94 in 2024, which indicates higher levels in 2025.
Minimum Price: By 2024, Ethereum could stabilize around a minimum of $4,271.42
Maximum Potential: The upper limit might reach an impressive $3,717.68Average Trading Price: On average, expect Ethereum to trade around $3,410.94
ETH Price Prediction 2025 – 2030
| ETH Price Prediction | Expected Low ($) | Average Price ($) | Expected High ($) |
| 2025 | $4,271.42 | $5,082.90 | $5,220.73 |
| 2026 | $7,233.25 | $7,487.33 | $8,605.92 |
| 2027 | $10,544.21 | $10,918.50 | $12,721.63 |
| 2028 | $15,222.21 | $15,768 | $18,412.54 |
| 2029 | $22,712.54 | $23,401.54 | $26,733.29 |
| 2030 | $34,482.75 | $35,568.92 | $39,677.92 |
Conclusion
Ethereum (ETH) is a significant player in the digital currency landscape, offering a wide range of applications beyond just digital currency transactions. Ethereum’s price has been influenced by significant events such as the DAO hack and the cryptocurrency bubble. The cryptocurrency bubble led to a significant increase in Ethereum’s price in 2017, followed by a sharp correction in 2018. Ethereum’s price has recovered significantly in recent years, driven by renewed optimism and increased adoption of the Ethereum blockchain.
