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Ethereum, the second largest, just registered a new high this past month, and although it's been moving sideways, there's plenty of reason to see the price heading even higher. Our Ethereum price prediction for 2025 will show you what sort of upside ETH has.
You see, Ethereum offers a usefulness not found in just any cryptocurrency.
Its smart contract technology lets it be used for any number of uses, which helps drive demand for the coins higher.
Today, we're going to show you how this utility combined with ETH's design is making our Ethereum price prediction very bullish.
First, let's take a look at how DeFi is remaking finance in the crypto age, and then we'll reveal ETH price targets for 2022, 2025 and 2030...
Ethereum's L2 Solutions Are a Major Catalyst
The past year, decentralized finance (DeFi) has taken the finance world by storm.
DeFi is powered by the Ethereum network, and it lets users borrow money, make loans, and collect interest the way they might with a bank. Except DeFi offers much higher rewards than traditional banking.
Since the beginning of 2021, investments in DeFi products has grown 12x from $21 billion to $258 billion.
Ethereum's blockchain now accounts for 65% of that total growth, making it the largest DeFi platform by a long shot.
Its rise is largely due to the strength of its technology. The blockchain supports smart contracts that enable anonymity on both ends of a transaction with no intermediary required.
These platforms have grown enormously over the last couple years while improvements have been slower to keep up. But that's about to change for Ethereum.
One of the biggest knocks against crypto, especially the established larger coins, is the vast amount of energy it takes to mine and trade them.
We've seen newer platforms designed to use less energy, and there are even miners using solar power or turbine power to generate electricity for the mega computers to mine coins and verify transactions.
This contributes to the limited transactions per second (TPS) allowed on these platforms. Right now, Ethereum can only process about 30 TPS. While that's six times the amount Bitcoin can handle, it's still 1,7000 TPS short of what Visa handles.
That scalability is a problem Ethereum has addressed, and the Ethereum 2.0 update will take the first step in eliminating the low TPS problem along with helping cut back on energy costs.
It's doing this by switching from a Proof of Work to Proof of Stake mechanism, and adding 64 other chains to the core blockchain to help distribute the network workload more efficiently.
This will also boost Ethereum's throughput to 3,000 TPS, with potential to increase up to 100,000 TPS.
Once this happens, we see the Ethereum price kicking even higher as one of the biggest arguments against it will be nullified.
Making those price gains even bigger is Ethereum's scarcity...
Ethereum's "Burn Rate" Is Deflationary
The supply of ETH is reaching a near three-year low. It's been slowly trending this way since late 2020.
Once transactions are processed on the Ethereum network, a small amount of ETH is "burned." In other words, it's destroyed forever. That keeps the supply low and rewards current investors as ETH becomes more and more valuable.
Think of it as the anti-dollar. The Fed has printed nearly half the supply of dollars this year alone, making it less and less valuable.
Ethereum is going in the opposite direction.
Now, only 12% of the total supply is available on exchanges, down from 17.3% at the start of the year.
That means simply owning the coins is enough to see gains.
It's also a sign of just how many people are staking their crypto to earn interest. That's going to grow even more as L2 is rolled out.
Tim Beiko, who coordinates the work for Ethereum core developers, explains, "more people staking means more staking rewards."
Ethereum Price Prediction
ETH has been holding steady above $4,000 since the end of October. But with any crypto, a volatile wind that could knock it down along with others at the top is always a concern.
That doesn't seem to be a concern with Ethereum heading into the new year.
Most analysts agree Ethereum will hold above $4,000 through the new year and will continue to increase with new developments and higher transaction rates.
Right now, bullish experts anticipate Ethereum surpassing the $6,500 mark by the end of the year. Coin Price Forecast predicts it to hit $7,397 by 2022.
Money Morning crypto expert Nick Black has an even higher target. Nick predicts ETH will reach $12,000 a coin in 2022, a 200% gain from here.
But there are some even more bullish Ethereum price predictions for 2025 and 2030.
Coin Price Forecast has a high target price of $16,462 by the end of 2025, up 255%.
Coin Price Forecast keeps a bullish position on ETH, predicting it to surpass $30,000 by 2030. Lite Finance has ETH reaching up to $29,300 in that time.
Those are nearly 500% gains on an established coin that is still evolving as it maintains its dominance in the crypto market.
While that's exciting, there are even more cryptos out there than Ethereum and Bitcoin. Some with even higher upside.
The markets are in the middle of a complete crypto frenzy - EVERYONE is talking about crypto.
Bitcoin just hit an all-time high of $68,000, and some experts are predicting it could hit $130,000... $300,000... even $500,000 in the coming years.
Which is exactly why our resident crypto millionaire just went live for an emergency summit.