Ethereum is the second most popular cryptocurrency in the digital market, ranking after the leader Bitcoin. The cryptocurrency has seen incredible success over the years, but also many fluctuations that impacted the Ethereum price in USD. The volatility of the crypto world is one of the main concerns of web3 users, but despite the challenges, the most influential coins have always gotten back on track with strength, bringing significant returns to investors who didn’t lose faith in the currencies. Lately, Ethereum has been subject to a crash that scared the community; however, considering the movement of the coin lately, it seems that ETH is slowly regaining strength, promising a better outcome in the near future. So, if you are asking yourself if it’s the right time to join the ETH community, in this article, we are going to forecast the path of the digital coin, considering the main aspects that could push ETH to a new high:
The world’s first programmable blockchain
Ethereum is a project launched in 2015, based on the blockchain technology and designed with programmability features that brought innovation into the digital market. The decentralized and programmable nature of the network is what drives its success, as it enables developers to create decentralized applications (dApps) that serve multiple purposes, covering the needs of a broad audience. For instance, the most popular use case of ETH is DeFi, decentralized finance apps that bring traditional financial services into the digital world, such as borrowing, lending, and exchanges, without relying on a central authority, but the activities are conducted between the two parties involved. Thus, users pay much lower fees. ETH is also popular for its wide NFTs market, non-fungible tokens, which are unique assets used as financial instruments for trading, collectibles, or in-game items, giving a new purpose to the gaming industry. It has a great ecosystem for businesses as well because since it’s a public, open-source ledger, it enables companies to manage their supply chain processes and even customers to track the products they purchase. Additionally, Ethereum works on a proof-of-stake mechanism, which addresses environmental concerns, aligning with the values of eco-conscious users.
What could push ETH to a new milestone?
Forecasting the path of the digital coins is not easy, as there are many aspects influencing their volatility. For instance, the main factor that has a direct influence on price fluctuations is the demand for the coin because when bad news or good news arises, they would most likely influence users’ perception of the crypto market, making them retire or embrace the coins. Tech innovations are another main aspect that captures the attention of investors and new entries because this suggests that new opportunities enter the digital market, which could represent a great starting point for new investments. To dig deeper into this subject, here are some of the latest innovations and improvements that could drive Ethereum’s success:
Approval of Ethereum’s ETFs
This year, the security exchange commissions approved a set of Ethereum’s spot ETFs, which are technologies that provide users with a closer look at ETH price movements without actually owning the coin in most cases, making trading an easier and safer game for many. These financial instruments represent a new investment opportunity that could bring considerable benefits to users, as they can take advantage of ETFs for portfolio diversification as a risk management strategy and, of course, to make use of them for their main purpose, making an informed decision based on their predictions for trading.
Layer-2 solutions
The dominance of the layer-2 solutions took the world by storm in 2024. These protocols started their success through Bitcoin, making it partially programmable, and nowadays, the technologies are becoming part of ETH as well, enhancing the capabilities of the main blockchain. In fact, Layer-2 solutions aim to add an extra layer of security to the principal blockchain of the cryptocurrency, in this case, Ethereum, and address scalability issues, taking some transactions off the hands of layer-1, enabling better performance and a greater number of transactions for both blockchains. Recently, in August, the global tech corporation Sony Group hopped on the trend, launching a layer-2 solution project on the ETH blockchain called Soneium, which promises further innovations and improvement of Ethereum’s ecosystem.
Decentralized finance
Decentralized finance applications (DeFi) are one of the most popular aspects that drive the popularity of Ethereum. They provide decentralized financial services to a borderless audience, promoting financial inclusion for the people who don’t have access to traditional financial systems. This industry is attracting many corporations (such as Sony) who want, in fact, to create a seamless ecosystem for these activities. We can say that DeFi creates a digital version of Wall Street but without the high costs. Decentralized finance is widely used thanks to the low fees, as it doesn’t involve third parties like traditional institutions, cutting some extra costs from the transaction process.
Is Ethereum a good choice?
In 2024, Ethereum is considered a great long-term investment because, despite all the fluctuations that the ecosystem has seen recently, all the innovations we presented above could bring the coin to a new milestone, promising great returns to investors. Thanks to the well-put-together technologies, we can safely say that Ethereum is here to stay, and experts consider that in the near future, the coin may even surpass its biggest rival, Bitcoin. Programmability, eco-friendliness, and innovation are three of the driving factors for the success of Ethereum. Without a doubt, the digital currency remains a top choice for traders’ wallets regardless of the hard times of the crypto market. As web3 expands, there are multiple opportunities for new applications to be built on ETH, also considering that the involvement of important corporations like Sony encourages others to enter the network, boosting the reputation of Ethereum and creating new opportunities.
