The excitement and price increase in August were due to the news of the upcoming transition to the PoS algorithm, which soon faded. The initial update of Ethereum 2.0, known as the beacon chain, is an independent blockchain that acts as a network coordinator and manager of consensus algorithms (Proof-of-Stake). Fundamental analysis can help traders determine the price of a cryptocurrency based on a wide range of information. Given the highly volatile nature of the cryptocurrency market, there are several possibilities in the cryptocurrency arena, including the possibility of Ethereum overtaking Bitcoin.
Taking this dynamic into account, cryptocurrency experts have drawn up price predictions for Ethereum in the second quarter of 2022. Along with the rest of the market, Ethereum is forecast to experience an upward trend due to just one factor: the recent approval of spot Bitcoin ETFs. Ethereum also faces competition from other major cryptocurrencies, such as Cardano, Polkadot, Solana, Binance Smart Chain, and EOS. The processing power and transaction performance of the Ethereum network are severely limited as it expands. Ethereum works more like a network that is continuously updated and maintained by validators who receive ETH as compensation for their contributions and efforts.
This is due to the diverse use cases of the Ethereum blockchain and the Ether cryptocurrency, he said. Funding rates are the monthly payments that traders receive based on price differences between the spot price of currencies and tokens and the price difference between perpetual cryptocurrency contracts. Depending on their preferences and requirements, investors can buy Ethereum online through cryptocurrency exchanges, brokerage services, peer-to-peer marketplaces, and decentralized exchanges. This bullish outlook is based on the expected halving of Bitcoin in April 2024 and the growing adoption of Ethereum in DeFi, NFTs, gaming and the metaverse.
Ethereum is the first and most popular programmable blockchain on the market, allowing for a complete ecosystem of decentralized applications. Ethereum also plans to implement sharding, as part of the Cancun upgrade, which will further increase its capacity and performance. These chains can independently process transactions and execute smart contracts, reducing congestion on the Ethereum core network.
