Just like a number of cryptocurrencies, Ethereum has suffered a drop in value; however, many are predicting that the second most popular cryptocurrency will take over in 2018. Ethereum had a really positive start to 2018, seeing all time highs, and despite this small dip, one expert has predicted that it will reach between $2,000 and $3,000 by the middle of the year, before hitting $5,000 and $7,000 by the end of the year.
The co-founder, Steven Nerayoff has said that he believes an increase in projects that are being built on the technology could case this virtual currency to overtake Bitcoin. He said;
“What you’re seeing with Ethereum is exponential increase in the number of projects – there are billions of dollars being poured into the ecosystem right now – maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year.”
That said, there are still a number of factors that could have a say on whether this price prediction happens or not. The crackdown on regulations is a big one, as it has meant that more traders are becoming wary of ICO’s, which could have a negative effect on those investing in Ether, causing the value to drop.
Another problem is the congestion on the network, which has had problems in the past, particularly when CryptoKitties was introduced, and highlighted how many improvements had to be made in order for it to handle a basic game.
Finally, the crypto competition could have a massive impact on the price of Ether. NEO, NEM, Stellar and Qtum are all very similar to Ethereum, and with these likely to gain attention and popularity, it could steer investors away from Ethereum. Only time will tell whether the expert predictions are correct or not.