ETH will rise to $ 10,000 in 2021, according to Fundstrat
Researchers from the analytical company Fundstrat have calculated that very soon the price of Ethereum could jump to $ 10 thousand. This conclusion was made on the basis of overcoming the historical maximum of 2.8 thousand dollars. Already at the beginning of this year, Ethereum was worth 2 thousand dollars, but it did not stop moving upwards, and today it has set its new record. In view of the sharp rise in cryptocurrency over the past month, analysts suggested that a stronger rise in the rate is likely. Moreover, while Ethereum was increasing in price, Bitcoin, on the contrary, became cheaper and dropped about 5 percent of its value over the same period of time.
Analytical research suggested that this dynamic will continue throughout 2021, as a result of which the popularity of Ethereum in comparison with Bitcoin will significantly increase. Even today, it can be concluded that the capitalization of the Ethereum network has increased to 30 percent of the same amount of digital gold, as Bitcoin is otherwise called. The focus of the market and its participants is gradually shifting from the most expensive digital asset to more affordable and no less reliable, like Ether. Other areas are also becoming more relevant - DeFi and Web 3.0. Analysts noted that such an increase in popularity will have a positive effect on the adoption of cryptocurrencies in the main areas of human activity.
The ETH network is actively developing financial applications, so the positive dynamics will only benefit them. According to research by experts from Fundstrat, Ethereum-based applications generate good profits through commissions, which, although small compared to Bitcoin, add up to decent returns that will soon be able to compete with the market capitalization of Bitcoin. Employees of an analytical company compare this state of affairs with an abstract company that makes a profit and immediately invests its net component (without operating costs) in the acquisition of the sold shares - their return to the company. This approach allows you to ensure high profits and protect users from inflation.
According to analysts forecasts, Bitcoin will cross the $ 100,000 mark in 2021. The global capitalization of all cryptocurrencies combined will also increase - up to $ 5 trillion. This will also include the value of cryptocurrency assets that will be locked in smart contracts in decentralized finance.