Despite a slight pullback from its all-time high earlier this year, ethereum (ETH-USD) is still on track to surpass $10,000 before the end of the year, according to one expert who has been correct thus far this year.
Megan Kaspar, the managing director of Magnetic, predicted ether’s tripling to over $3,000 in January when it was still hovering around $1,000, told Yahoo Finance on Friday that the second-largest cryptocurrency by market value could still meet her $8,000 to $10,000 price estimate in 2021.
“Investors are still using crypto as a favorite tool to hedge against inflation,” she said, adding that two new upgrades are likely to catapult the ethereum network when completed. Those proposals will initiate the “burn” or elimination of the fractions of ether that had previously been paid to miners in transactions.
“Towards the end of the year, beginning of next year, we’ll have about a million worth of ethereum coming out of supply. So that will initiate it becoming a deflationary asset,” Kaspar said.
Simultaneously, non-fungible tokens, or NFTs, that transact on the Ethereum network have recently gotten a lot more attention. The cartoon image of a rock sold for more than $1.7 million this week as part of the EtherRock NFT collection. According to industry tracker NonFungible, monthly NFT sales touched a new high near $900 million in August.
That spike in attention is continuing to bring people into ethereum, since many of the NFT sales on sites like OpenSea and others price NFT auctions in ether.
“I think we’ll continue to see this as the younger generation feels comfortable buying and owning assets that are not physical, and that, again, is sort of the tech trend that we’re moving towards in dematerialization,” Kaspar said.
Source: Yahoo News