After gaining more than 460 percent in 2020, Ethereum’s native cryptocurrency ether has continued to rise in 2021. Recently, ether hit a new all-time high close to $1,500. Is ether a good investment in 2021? What are the ether price predictions for 2021 and beyond? 

Ether seems to be benefiting from institutional investor demand that recently powered bitcoin to record highs above $40,000. The number of deep-pocket investors or the so-called “whales” purchasing the Ethereum cryptocurrency has increased in recent months. 

The great thing about institutional investors is that they tend to have a long horizon. While there might be a correction after a huge price surge, the involvement of large investors helps provide a level of price support.

Is Ethereum a good investment?

While bitcoin is considered digital gold, Ethereum is considered digital oil because of its massive potential. Ethereum is the most-actively used blockchain. In fact, many crypto projects have been launched on the network. Ethereum has been particularly popular with decentralized finance applications.

Article continues below advertisement

The network is undergoing an overhaul that would make it more powerful and attractive for launching crypto projects. Ether might see broader adoption after the network upgrade is complete, which should boost its price.

The Ethereum network upgrade will enable ether staking, which could yield up to 15 percent for investors. First, that would make ether a good investment for those looking for others ways to make money with their crypto holdings beyond trading.

Article continues below advertisement

Since staking reduces the number of coins in circulation, staking on the Ethereum network should lift ether’s price if the supply decreases and demand remains strong.

Article continues below advertisement

Ether futures trading is already available on other platforms and they have been progressing well. Adding ether futures trading on CME Group should increase the visibility of the Ethereum cryptocurrency to institutional investors, which could increase ether’s price in the spot market.

Source: istock

Article continues below advertisement



Source link

empty message

empty message

empty message

empty message

empty message