cryptocurrency

Is Ethereum A Good Investment In 2022? – FinSMEs


Ethereum

It’s never too late to invest in the cryptocurrency market. Ethereum, in particular, is one of the most lucrative investment options you can pick off the list of cryptocurrencies. Its potential to open more opportunities for investors cannot be exhausted soon.

Experts believe Ethereum has a growth projection of over 400%, a considerable leap since its launch in 2015. And today, its developers are working to improve the platform and increase its services across the digital landscape. Moreover, the blockchain-based network is looking to reduce its environmental impact by reviewing its operations and cutting energy consumption. 

Suppose you’re looking into investing in Ethereum. You can read through this Ethereum guide to learn more. Furthermore, this article explores why Ethereum can be a good investment in 2022. 

  1. Market Capitalization

There’s a looming upgrade of the blockchain-based network that is believed to affect how Ethereum works. It’ll simplify the transition from proof of work (PoW) to proof of stake (PoS) protocol, with developers targeting to increase efficiency and reduce transaction costs. 

The intended changes are believed to significantly affect the market capitalization of Ethereum, which is at $209.66 billion. If you invest now, the prices could increase in the long term and multiply the value of your portfolio.

  1. Application Of Ethereum

Ethereum is more than a digital payment platform. Users also have an opportunity to be creative and develop masterpieces in terms of smart contracts, DApps or Decentralized Applications, and non-fungible tokens or NFTs. 

Multiple industries, such as gaming, music, and entertainment, can also benefit from Ethereum. The application has transformed products and services rendered in those niches. And the future of Ethereum looks bright as more developments are set to come from the upcoming merger of services.

  1. Growth Potential And Price Prediction
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In general, Ethereum experiences volatility in the cryptocurrency market and maintains the second-best digital currency after Bitcoin. It’s known to withstand pressure from new coins and tokens debuting in the digital currency landscape.

Experts believe in the possibility of 300% capital gains on all Ethereum holdings. However, predicting its price can be quite challenging due to the upcoming Ethereum merge and the competition from Altcoins. The cryptocurrency community foresees price fluctuation possibilities on Ethereum, but the weight might lean on an increase of up to 400%. 

With that promising growth on the horizon, investing now in Ethereum can grow and transform your portfolio significantly, multiplying your earnings and boosting your investment value. Although, the emphasis is on research and learning what’s on offer in the upcoming project beforehand.

  1. Ethereum Trends

The switch to the newer, less energy-intensive version promises to bring good tidings to Ethereum holdings. The price will most likely skyrocket as more people could want a piece of the innovations in their portfolio.

The adoption of Ethereum in several industries is also a trendsetter to watch. This can contribute significantly to investor participation in the blockchain-supported network. The traded volume is also believed to increase, hence an optimistic trend for the underlying digital currency. That said, investing in Ethereum requires patience as you enjoy the upward trend projected by cryptocurrency experts. 

  1. Can Outlast Recession 

Since 2015, Ethereum has been a viable investment option offering various functions to investors and the cryptocurrency community. The project is constantly being reviewed to improve its cryptocurrency space tasks. 

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Many established cryptocurrencies have proven to withstand recession by maintaining their value. Ethereum’s relaunch projections also look to create sustainable competition in the cryptocurrency market. The value has been stable for a while, and experts hope that Ethereum holdings will grow after switching to the new network.

  1. Safe For Your Portfolio And Cryptocurrency Transactions

The Ethereum platform generally offers one of the safest wallets in the cryptocurrency landscape. This follows an invasion of the network that led to millions in losses. However, it would be worth noting that fraud and theft are among the risks in the cryptocurrency market, and developers always work to ensure portfolio protection.

Aside from providing highly secured transaction systems, Ethereum also faces tough competition from other cryptocurrencies due to gas fees. Although, experts hope “the merge” will change such issues and establish authority in the market.

Final Thoughts

Looking at the ongoing conversations about Ethereum in the cryptocurrency community, you can somehow assess and tell if now is the right time to invest. It’s clear that Ethereum is more than a currency in the digital landscape, and more industries are leaning toward leveraging offers such as smart contracts. 

In addition, the upcoming merge also looks promising as the developers continue to work to improve the network. However, it’s always best to use caution when investing in the cryptocurrency market to minimize drastic losses.



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