Ethereum (ETH) is the second-largest cryptocurrency in terms of market capitalization. It attained its all-time high price of $4,878.26 on November 10th, 2021.
It is presently trading at about $2,688.55 at the time of writing. Presently, there are over 19320 cryptocurrencies in the world according to CoinMarketCap. This makes it challenging for investors to know which ones could be profitable in the long run.
In my take of cryptocurrencies to hodl for the long term, ETH is among the top in the kist for the following reasons:
Positive possibilities with Nonfungible Tokens (NFTs)
The nonfungible tokens (NFTs) evolution in the Cryptocurrency space has changed a lot of things. At the time of writing, according to CoinMarketCap, the market capitalization of NFTs has increased by over 145% in the past 30 days.
ETH is the major blockchain where most of the top known nonfungible tokens are launched. In a research data by Emergenresearch, the market forecast for NFTs is expected to reach about $130 billion in sales by 2030, with an estimated yearly growth of 33%. This means that ETH will be in high demand since it is required to pay fees for creating or purchase of the tokens in decentralized platforms like OpenSea.
Its adventure with history Ethereum
Only individuals who are joining the crypto space recently or had little knowledge about Ethereum history will be afraid of this present downtrend. Presently, the return on investment for Ethereum (ETH) is 619791% in the past six years and seven months. After the boom of the Cryptocurrency market in December 2017, Ethereum dipped to less than $90 by 2018.
Many thought that it could even go down to $0. However, the market correction that was enhanced by the Decentralized Finance evolution saw its price begin to get bullish in 2020 until it attained its present all-time high price. Although, it’s the price has fallen by over 45% since then, we should expect another strong bullish run that will make it break its present all-time high price soon.
Possibility of rising in gas fees
Gas fees paid to miners are one of the factors that keep the Ethereum blockchain active due to the proof-of-stake consensus mechanism that it uses.
As the gas fees increases, the price of Ethereum will increase as well since token holders in the Ethereum blockchain requires to get Ethereum to transact on the network.
Research data available on Analyticinsight shows that Ethereum gas fees are expected to rise by 500% in the next two years. If this rise has a proportional effect on the price of Ethereum, we should expect it to trade at a minimum price of $15,000 by the end of 2024.
In conclusion, since most top Ethereum wallets that are controlled by its whales are bullish in their long-term forecast, it could be profitable to hodl it for while irrespective of the present market dip.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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