Market analysts have recently expressed optimism regarding several cryptocurrencies, with Ethereum receiving special attention. Consultants at deVere Group have reportedly issued strong price guidance for that currency, saying Ethereum could reach $2,500 by year’s end.
Ethereum is the world’s second-largest cryptocurrency.
During an interview with MarketWatch, deVere’s founder and CEO, Nigel Green, bases his prediction for Ethereum based on several factors. First, Green proposes that increased regulatory actions in the cryptocurrency sector will inspire investor confidence.
Smart contracts, a system for automating financial trades, and other emerging tools will boost Ethereum’s appeal. Smart contracts make credible transactions possible without the need for third-party oversight.
Green also told MarketWatch that he sees the increasing popularity of Ethereum and decentralized cloud computing as drivers behind the coin’s current growth spurt.
As a whole, cryptocurrency markets were shaken after December’s dramatic collapse of Bitcoin. That coin was trading near $20,000 before tumbling below half its value. Like most digital currencies, Ethereum had a lackluster first quarter, but now shows encouraging signs of life.
Although some traders may balk at the regulation of Ethereal and other currencies, Green sees government involvement in the crypto market as necessary to encourage more traders to embrace the currency.
Optimism surrounding the cryptocurrency market isn’t limited to the financial consultants at deVere Group. Tom Lee, of Fundstrat fame, maintains his bullish stance on Bitcoin, recently reaffirming to CNBC his belief that the leading coin will hit $25,000 before the end of 2018.
Although BitCoin continues to lead the field of alternative currencies, Ether Coin, based on the Ethereum network, has become a favorite for many token issuers.
One practical advantage of Ethereum, from the issuers’ perspective, is transaction time. While Bitcoin transactions may take as long as 10 minutes, Ethereum transactions require approximately 14 seconds.
Right now, Ethereum boasts more than $67 billion of market value.