Crypto Investment analysis: Will Ethereum a good investment on upcoming years?

Ethereum Crypto investment analysis by Cryptocrit

Ethereum is a decentralized, open-source blockchain platform that was created in 2015 by a developer named Vitalik Buterin. Ethereum's primary goal is to provide a decentralized platform for developers to build decentralized applications (DApps) and smart contracts.
Unlike Bitcoin, which is primarily used as a digital currency, Ethereum is designed to be a platform for decentralized applications that can execute complex logic through the use of smart contracts. Smart contracts are self-executing programs that run on the Ethereum network and automatically enforce the rules and conditions set forth in their code.
Ethereum has its own cryptocurrency called Ether (ETH), which is used to pay for transactions and computational services on the network. Ether can also be traded on cryptocurrency exchanges like other cryptocurrencies.
One of the key features of Ethereum is its ability to create and issue new tokens on top of the Ethereum blockchain using the ERC-20 standard. This has made it easier for developers to create their own tokens and launch new cryptocurrency projects without having to build their own blockchain from scratch.
Overall, Ethereum has become one of the most popular blockchain platforms for developers to build decentralized applications, and its ecosystem continues to grow with the development of new tools, protocols, and applications.

Ethereum trading history:

Ethereum (ETH) was launched in July 2015, and since then, it has experienced significant growth and price volatility. In the early days, the price of Ethereum was relatively low, with minimal trading volume. However, as the platform gained traction and more developers and projects started utilizing Ethereum's blockchain, its price and trading volume increased.
Ethereum's most notable price rally occurred in 2017 when it experienced a significant surge in value. The price of Ethereum started the year 2017 at around $8 and reached an all-time high of over $1,400 in January 2018. The lowest price for ETH that year was just under $8, where it began in January. The ETH price then rose as high as $881.94 by December. From 2019 to 2021, Ether once again continued to rally and reached its highest price of $4,815 on November 9, 2021.
This surge was driven by various factors, including increased interest in blockchain technology, the initial coin offering (ICO) boom, and the overall growth of the cryptocurrency market during that period.
Following the peak in early 2018, the price of Ethereum experienced a significant correction, as did the broader cryptocurrency market. The subsequent years saw periods of price volatility, with Ethereum's price influenced by market trends, regulatory developments, technological advancements, and general market sentiment.

Ethereum major investors and market capital:

Ethereum (ETH) has consistently been one of the largest cryptocurrencies in terms of market capitalization. Market capitalization refers to the total value of a cryptocurrency and is calculated by multiplying its current price by the total supply of coins or tokens in circulation. The current market cap of Ethereum is $218.44B. Ethereum (Ether) had the highest market capitalization of $571.67 billion on November 9, 2021. A cryptocurrency's market capitalization is determined by multiplying its current price by the total number of coins or tokens in circulation. Ethereum had a market capitalization of $80 million on August 8, 2015 when it was launched.

ETH market volume 2017-2023

It's important to know about the major investors who are contributing to the growth and development of the cryptocurrency. The major investors of Ethereum play a crucial role in the market with price diccovery, liquidity, market efficiency, funding and capital formation, market stability and innovation and development. However Ethereum has attracted a wide range of investors, including both individuals and institutions. ConsenSys is a blockchain technology company who is one of the major investor in Ethereum and has developed numerous projects and initiatives on the Ethereum platform. Also several crypto investment firm are the investors of Ethereum like Pantera Capital, Grayscale investments, Andreessen Horowitz and Ethereum Community fund.

Ethereum market beta and risk analysis:

According to market expert a beta higher than 1 indicates that the asset is not only volatile but also highly correlated with the market. In contrast, low or negative values of beta may suggest that an investment has lower volatility than the market, or that its price movements aren't highly correlated with the market.
In the case of Ethereum, it is difficult to calculate a precise market beta because it is a relatively new and highly volatile asset that does not have a long history of trading. However, based on historical data, Ethereum has shown a strong positive correlation with the overall cryptocurrency market, particularly with Bitcoin.
But according to market traders we have reportedly found that ethereum is extremely volatile. That means it experiences large price movements over short periods. This means that as the overall cryptocurrency market goes up or down, Ethereum tends to follow suit. In times of market volatility or uncertainty, Ethereum may be more volatile than the broader market, leading to higher beta values.
It's important to note that market beta is just one measure of risk and doesnot capture all of the unique risks associated with investing in cryptocurrencies like Ethereum. As with any investment, it's important to conduct thorough research and understand the risks before making any investment decisions.

Demand impact of Ethereum:

Institutional adoption of Ethereum, like other cryptocurrencies, has been growing in recent years. Various institutional investors, such as hedge funds, asset managers, and family offices, have shown an increasing interest in Ethereum. Some institutional investors have included Ethereum in their portfolios alongside other traditional assets, recognizing its potential as a store of value or investment opportunity. Grayscale Ethereum trust provides institutional investors with exposure to Ethereum, Chicago mecantile exchage has facilitated institutional participation which allows institutional investors to hedge or speculate on the price movements of Ethereum.
Ethereum, like many cryptocurrencies, is often seen as a risky and volatile asset that is subject to market volatility and inflation. However, some investors believe that Ethereum can serve as a safe-haven asset against these risks, particularly in the context of the current macroeconomic environment.
One reason for this belief is that Ethereum, like Bitcoin, has a fixed supply cap, which means that its supply is limited and cannot be inflated or manipulated by central authorities. This gives it a degree of protection against inflation, which can be a concern for investors in traditional assets like stocks or bonds.
Additionally, some investors believe that cryptocurrencies like Ethereum can serve as a safe-haven asset during times of market volatility. This is because cryptocurrencies are not tied to traditional financial markets and can offer a degree of diversification and protection against market downturns. However, it's important to note that cryptocurrencies like Ethereum are still highly volatile and can experience significant price fluctuations, so they should not be considered a risk-free investment.
Ultimately, whether Ethereum can serve as a safe-haven asset against market volatility and inflation will depend on a range of factors, including macroeconomic conditions, investor sentiment, and the adoption and usage of Ethereum as a financial asset.

Experts opinion on Ethereum investment:

According to the maximum crypto experts suggest that Ethereum is set to rise as the year progresses based on multiple perspectives, although it will not come close to its all-time high ($4,815). The coin reached this height on November 9, 2021, just before the crypto winter started pushing crypto prices down. Most interesting fact is that a group of finance professionals believe that ETH could reach its peak in 2023 at around $2,758. However, after that the price is expected to start dropping again in the second half of 2023, sinking to $2,342 by the end of the year.

ETH price history

The CEO of Cake DeFi, Julian Hosp believes that “The ETH ecosystem will be the number one decentralized developer ecosystem, and its market cap will reflect it over the next few years.” He forecast that ETH will hit $67,565 by 2030. .

Although a price increase of more than 10x is a bullish price forecast, it pales in comparison to the CEO of Coinmama, Sagi Bakshi’s estimate. With ETH looking “better than the rest” of the layer-1 competitors, he sees it hitting $133,000 by 2030.

Not everyone was so bullish. Paul Levy, a senior lecturer at the University of Brighton, expects the price of Ethereum to be $20,000 by 2030, which is still a significant increase from here. Although the truly bearish prediction came from Robert Johnson, a professor of Finance from Creighton University, predicting the price of Ethereum will hit zero by 2030.

It means one thing is very clear that there have mixed opinion on experts about Ethereum, the possibilty of estimated price reach is possible from $0 to $133000.

Conclusion:

The most important fact on crypto market is that, it’s a matter of highly speculative and subject to rapid and unpredictable price swings. Here we have seen that expert opinion on Ethereum can vary and it’s important to consider multiple perspectives. Experts are sharing option on Ethereum based on theoryof several factors and trends. Now only the time will tell how effective Etherum’s “wisdom of the crowd” therory is.