Ethereum Price Prediction - Why ETH Is Ready for the Fightback and You Need to Buckle Up
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Ethereum is the second most valuable crypto project behind Bitcoin. The protocol enables the development of several decentralised solutions and apps and directly impacts music, gaming, entertainment, and decentralised finance (DeFi). However, it has not enjoyed a smooth sail in this year's second half.
What are the possible turning points for Ether’s price, and what crypto asset is the best investment for now? Continue reading to find out.
The Merge Comes with More Tidings
The Ethereum network recently completed its transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus algorithm. This is the first step in the series of network changes included in its Ethereum 2.0 roadmap. The immediate effect is even much more worthwhile for ESG-minded investors.
Environmental, societal, and governance (ESG) factors have been a bottleneck in the wide adoption of cryptocurrencies. While digital assets come with multiple benefits their energy-guzzling validator systems have deterred environmental activists and entire governments from supporting the emerging industry. Asian giant, China outrightly banned the mining of cryptocurrencies in its Inner Mongolia regions and Mainland China due to the energy demands that they come with as the country worked on attaining its climate change goals. This was due to the PoW algorithm Bitcoin, and Ethereum relied on.
Now that Ethereum has switched to PoS following the Merge, Ethereum's energy consumption has been slashed by 99%. Speaking on this momentous event, Ethereum's principal developer, Vitalik Buterin, said the transition has basically solved 0.2% of the world's energy concerns.
With Ethereum now carbon neutral, environmentally-focused investors are likely to turn their attention to it in the coming weeks.
Ethereum Is Now Deflationary
Another side effect of the Merge is the reduced number of tokens issued to validators. Following the historic upgrade, the Ethereum network has so far issued 5,427 new Ether tokens compared to its former PoW system, according to current data from ultrasound.money. When simulated against its former consensus algorithm, the Ethereum network would have issued a whopping 103,984.86 Ether tokens to its blockchain miners.
Given this, Ether has readily shifted from having a hyperinflationary position to a deflationary one after it reduced its token issuance by 95%. This puts it in the same ideal box as Bitcoin, which is also seen by many as a great store of value. With the Merge complete, Ethereum has essentially hit two targets with one stone - addressed the issue around its energy use and also made itself deflationary.
Popular Ethereum crypto influencer Thomas Kralow believes this transition could set the smart contract network up for future success. According to him, Ethereum could hit $10,000 following the growing institutional adoption in the coming months.
More Is Yet to Come
The Merge is the first of many upgrades the Ethereum network will undergo in the coming months. Buterin said Ethereum would still undergo the Surge, Verge, Purge, and Splurge. Each are critical network points that would essentially make Ethereum much more suited for both businesses and individuals and would see sharding, cleanup, and evolution of the protocol ensue.
Confirming the details at a Community Conference in France, Buterin noted that the development of the network is more of a long-term goal instead of rushing to the market with an unfinished project. This way, Ethereum would be sustainably scalable, cheap, and use less energy as well.
Tamadoge Is The Next Ethereum
While Ethereum is gaining the spotlight, several new blockchain projects are rapidly redefining the space. One of such is the Tamadoge project, one of the best play to earn blockchain games. Launched in the middle of 2022, Tamadoge is a blockchain-focused game that allows users to raise digital pets as non-fungible tokens (NFTs). The end goal of this is to battle other digital pets for superiority in order to earn the network token known as TAMA, making it a play-to-earn (P2E) concept
Beyond this, Tamadoge also incorporates a metaverse concept through its TamaVerse, allowing players to watch, interact, and explore the virtual reality space. The project has seen major acceptance, with its presale record eclipsing Ethereum. Completed a full month before, the Tamadoge project raised $19 million in contrast to Ethereum’s $16 million ICO raise in 2015.
The project is set to make its official launch on the popular OKX exchange on September 27 and will allow investors to trade the digital asset on its spot channel.