What will be the future value of Ethereum? A lot of people have asked me about my Ethereum price prediction so I decided to explain what I think are the 3 main drivers that will influence its price.
There are 3 main questions that come to mind when making a prediction on Ethereum price: How many dapps will be running on the network in the future? How fast the Ethereum technology will develop? How well will it hold as a store of value?
What is the adoption rate of Ethereum?
First, let’s have a look at its adoption rate. There are more and more people who want to build dapps (decentralized applications) on Ethereum because you can build things with it that weren’t possible a few years ago.
Microsoft, JPMorgan, Intel and many more are now dabbling in the Ethereum blockchain and using the new platform to deploy their Decentralized Applications. There is no other blockchain that has as many big companies working on their platform as Ethereum.
Ethereum fuels hundreds of new cryptocurrencies
Many other cryptocurrencies have been deployed on the Ethereum network. You can follow the top 50 Ethereum token on this site, the most popular ones are Augur, Golem, Gnosis, Digixdao, SingularDTV. All those applications increase the utility of Ethereum and furthermore drive its value. I don’t see this trend slowing down any time soon.
Also, there’s currently over 390 dapps deployed on the Ethereum network.
The main reason that this trend will increase is that new dapps get value out of the existing ecosystem of dapps. The growth of the network will build upon itself and create a snowball effect.
Ethereum technology keeps on improving
The second point to take into consideration is that the technology behind Ethereum is improving at a steady pace. Vitalik Buterin and his team have been working on the project for quite a while now. They moved the project along from an idea in early 2014 to a thriving ecosystem of dapps and a solid development roadmap today.
There are many things that are still left to do but with the team of developers that Ethereum possess, there’s little doubt that they will find a solution to every problem they face. The Dao fiasco was very well handled in my opinion and the value of Ether has raised many fold since the incident.
Is Ethereum a safe investment?
The last but not the least point we need to discuss in this Ethereum price prediction is how well Ethereum will hold over time as a store of value.
Vlad Zamfir, one of the founding members of Ethereum, said multiple times that Ethereum wasn’t safe or meant to be considered as a store of value.
Ether is meant to fuel dapps
The main function of Ether is not to hold its value like Bitcoin does but to be used as fuel to run decentralized applications. For that purpose, the inflation rate of Ether is not set in stone. The development team could decide to increase the amount of Ether created every year by 100% or more if they wanted.
I think a great comparison would be a commodity like platinum. It’s rare and it drives its main value from commercial uses but a lot of people like to speculate on it.
Did I invested in Ethereum?
So you can see that my Ethereum price prediction is mostly positive and I think that its price will go up over the long term. I do own some Ether because I think that the utility of the Ethereum blockchain will increase as more dapps get launched on the network, mostly driven by the fate in the development team.
The only down side I see is that the inflation rate of Ether could change anytime without much notice. But overall, I think that Ethereum is one of the top 5 best cryptocurrency to invest in and that it should be part of the portfolio of a conscientious cryptocurrency investor.
My Ethereum Price Prediction
I think that Ethereum will most likely reach +200$US dollar in 2018. So Ethereum is on my buy list for 2017.
What are you the most excited about Ethereum? Let me know in the comment section below!
Hi Alex am happy to meet u online please I will like u to b sending me update on bitcoin
Also I will like to know more about Etherum and how to invest on it. Thanks
What do u think about the minning machines? can i invest in that side of the crypto?
Alexandre Fortin says
You could buy Mining hardware and mine at home, but don’t do cloud mining.
Ratan Lal says
Why it loud mining. Think that would be the best place to get all the power and scalability.
Ratan Lal says
Why not cloud mining?
Ruth Jenkins says
I bought some bitcoins last year but now I want to invest in etherium how do I buy purchase ethereum?
RAMANDEEP GUPTA says
Alex…Is it the right time to invest in Ethereum,when ether already costing around 200$ or either Ether bubble will burst ..?
i would also like to know if its the right time to invest in ether when the price is alredady at $240+
also can you please make 2017 list for a top 5 currencies to invest in
Is Ethereum still worth it being that it’s $260 right now on June 6, 2017?
Alex, Im so depressed I read your Top 5 crypto coins to invest in 2017. Seems all your predictions came true, even Ripple, which you had been on the fence about. What now? everything seems it already peaked… Did I come in late? What hopes do I have now to make any money with these crypto currencies?
Crypto Ragnarok says
Pablo, the article from Alex already made people nice returns.
Do your diligence, study the crypto field carefully. Don’t buy in frenzy periods (for determining frenzy periods, check the crypto price graphs – now is definetely one such period, smart money already bought in 2016, speculators jumped on board early 2017, entering now is waiting to be fleeced). Make sure to check if crypto can appreciate relative to Bitcoin, make sure to keep a share of your funds in bitcoin… all good advice which you can also hear from experienced traders like WhalePanda and others.
When crypto seems peaking and yielded massive 800x-1000x returns, convert some share of your investments to fiat and wait for interesting projects.
I’d be on the lookout for Tezos. Vitalik can be critical of democracy all he likes, but governance is a very serious issue in the blockchain world, look at BTC. So is safe coding. Solidity is the easy way, but relying on it for anything mission-critical is suicide (Vlad’s ETH saying remains true regardless of the ICO bubble that pushed ETH value well beyond its actual use-value). But don’t rush with FOMO – learn from many ICOs which shortly after that collapsed in price relative to ol’ granddaddy Bitcoin. Sometimes these huge projects are easier to buy in some months after the ICO, especially as tezos people claimed they’ll shortly convert their funds to fiat.
Peace to all, and vires in numeris