2020 has been a great year for cryptocurrencies, especially for Ethereum. Advancements in the DeFi infrastructure, big tech using blockchains, and having more interest in using the cryptocurrency pushed prices very high, without forming any kind of a 2017 bubble. Unlike back then, solid fundamentals are taking place, with less hype and propaganda. Despite that all, Ether didn’t even reach its all-time high price. Why should Ether reach the USD 1,000 milestone soon:
1- Growing FinTech Adoption
Recently, Visa announced a partnership with Circle, to get their USDC integrated across crypto payment cards. This is very bullish for Ethereum, as this is the first time Visa has opened up its network to a digital currency, and as we know, USDC is built on top of Ethereum just like many other coins.
We are currently at the beginning of the crypto bull run, and this will not be the same as the one in 2017. The competitive landscape of Defi will once again get fierce, with solutions, protocols, and enhancements coming so frequently, which might make newbies head spin. But this time, entry to the crypto world will come from your typical app, like Coinbase, PayPal, and others getting ready to “announce support”. Unlike 2017, the transfer of new investors from just the supported cryptocurrencies in those apps to the further trenches of crypto will happen in a FLASH compared to the last run.
We already have access to Ethereum and parts of its DeFi on Coinbase, Eth2.0 staking is coming to Coibnase soon, and Paypal is able to launch with Ethereum support. Education today is so much better, so another DeFi bubble won’t hurt the market as much as before.
2- Ethereum 2.0 is running smoothly
Recently, the founder of Ethereum Vitalik Buterin tweeted about how the roadmap of ETH2.0 is going well:
Oh, and @algo_class just published his long-awaited EIP 1559 review! Let's work hard and get this important economic upgrade into ethereum soon.https://t.co/36bVGSVhDM
Another important economic upgrade is happening, which is the EIP 1559 aka the Burn Upgrade. When transacting, Fees were so far constructed by a transaction fee and a base fee. Basically, the EIP 1559 will “burn” the “Base Fee” forever, and in turn reducing the supply.
3- Ethereum’s Market Cap is still undervalued
Currently, the total market cap of Ethereum is at USD 67 Billion, less than HALF of how much it reached back in 2017 when the fundamentals were weaker.
It is natural for the price to take a breather at the current high, that’s why the price stopped increasing and entered a sideways trend. Since we already reached the USD 600 level, the next targets would be the USD 700 and USD 800 price areas, where previous price-actions showed major volatility back in 2018.
