Ethereum price was only $ 11 in the most recent presidential election – now it is $ 355, what is the next prediction?
Four years ago, in the last presidential election, Ethereum price hovered at $ 11. Today, four years have passed, ETH is valued at $ 355. Thus, in just four years, ETH has recorded an increase of 3,127%.
Will history repeat itself with Ethereum price?
Evan Van Ness, an Ethereum researcher, said:
Four years ago during the #PresidentialDebate, the price of Ether was $11.
If you want to vote for the future, buy $ETH
— Evan Van Ness (@evan_van_ness) September 30, 2020
Three main catalysts have propelled the price of Ethereum more than 30 times in four years. Factors like the resurgence of decentralized finance (DeFi), increased user activity, and ETH 2.0 predictions are included.
Since the mid-2020, demand for Ethereum has increased dramatically at an unprecedented rate. Most of the new direction for ETH comes from the DeFi market. Before the DeFi fever, gas costs rose to levels not seen before. Over some periods, the average gas cost has increased to 600 to 1,000 GWEI, costing users between $ 50 and $ 200 per transaction. Since users have to buy ETH to pay for gas, that increases the demand for ETH. Many users have also staked ETH to earn governance tokens on emerging DeFi protocols.
The confluence of two factors has exacerbated the recovery of ETH from the March 13 crash – Black Thursday.
Since March 13, the price of Ethereum has risen from below $ 100 to above $ 355. At its peak, ETH reached almost $ 500, topping out at $ 488.84.
Data from Etherscan shows user activity on Ethereum has reached an all-time high. On September 17, the number of daily transactions on Ethereum reached 1.4 million, to a new record high. Increased user activity comes from the DeFi market, as users started using decentralized exchanges like Uniswap on centralized platforms.
At its peak, Uniswap’s daily volume surpassed Coinbase Pro, processing $ 426 million transactions in a single day.
Prediction ETH 2.0 is under construction
Ethereum users expect ETH 2.0 to launch soon as the ecosystem needs it more than ever. High gas costs and congested blockchain networks have caused the user experience in DeFi to decline. For the first time, legitimate user activity is overwhelming the blockchain to the point that it cannot handle all the capacity.
As for Ethereum’s long-term growth trajectory, such a trend is very bullish. During previous bull cycles, ETH price has skyrocketed, but there are lackluster fundamentals, and users need to replenish it.
Around this time, ETH price is increasing in parallel with user activity and overall investor demand. Throughout the next four years, if backed with full developer activity and progress with ETH 2.0, Ethereum’s trajectory remains positive.
You can see the ETH price here.
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