A panel of financial experts assembled by Finder provided an updated price prediction for Ethereum. The panel suggested Ethereum to end the year on a high at around $5800. This is a major bit of news for the Ethereum community for many reasons.
The Ethereum community has been in distress for several months now. This year was to be their year of dominance with the imminence Merge along with a host of other soft forks. However, Ethereum was unable to live up to expectations. Ethereum price has fallen over 43% from its November 2021 all-time high at around $2,800.
What has happened?
However, Ethereum has actually done well in other areas in the past two years. According to a Bankless study, the DeFi TVL in Ethereum has increased 82% from $49.1 billion to $89.5 billion over the year. This measures the value of the assets deposited into Ethereum-based DeFi protocols, such as decentralized exchanges, money markets, and options vaults.
Ethereum has also benefited from the growing interest in NFTs which are the most important built on the Ethereum blockchain. The all-time NFT sales volume on Ethereum stands at $25.6 billion, which is considerably more than the next four combined.
But the panel still holds skepticism about Ethereum with rival platforms showing growth in this period of macro turbulence. Keegan Francis, Finder’s cryptocurrency editor, says,
“Ethereum is currently at a very uncertain stage in its journey. Ethereum is currently losing DeFi market share to its competitors, although it still remains dominant by a huge margin…. I don’t think Ethereum will be a second cryptocurrency forever.
Panelist and Thomson Reuters technologist Joseph Raczynski also warns that,
“It (Ethereum) should be more secure, 99% more energy-efficient and deflationary. If that isn’t the trifecta of potential, as a leading blockchain, I don’t know what would be.”
Not All Is Bad For ETH
Ethereum miners generated about 1.08x more revenue than Bitcoin miners in April, according to The block. Mining Ethereum has been much more rewarding than Bitcoin. This trend has continued since May 2021.
The ETH miners saw an increase in their revenue by 6.2% for a total of $1.33 billion. A larger portion of the Ethereum revenues came from the subsidy, at around $1.25 billion. AT the same time, transaction fees totaled around $82.88 million while uncle rewards stood at $58.85 million.
