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!