After a remarkable 2021 where Ethereum-based projects pushed Ether higher, cryptocurrency analysts expect massive actions in 2022.
Indeed, Ethereum has seen attractive performance in 2021. The leading altcoin traded around $700 on December 31, 2020. As 2021 nears an end, ETH/USD trades with a bullish attitude beyond $4,000. That translates to a more than 300% gain per year. Meanwhile, BTC/USD’s YTD returns stand at 80% during this publication.
Also, ETH/BTC increased significantly this year from below 0.03 to 0.08 as December approached the end. As of today morning, ETH’s overall market cap sat beneath $500 billion, whereas BTC’s hovers close to the 1 trillion mark.
Nascent Web3 Growth Boost Ethereum Performance
Crypto analysts attribute Ethereum’s performance versus Bitcoin in 2021 to the former’s high flexibility when integrating innovations such as NFT, DeFi, and Dapps projects. True enough, these sectors have witnessed an explosion this year. Also, projects like Shiba Inu have many related projects built from the ETH blockchain.
BOOX Research revealed that ETH received help from excitement behind its prospective to run the embryonic web3 and hype on Ether-based non-fungible tokens. Also, venture capitalists and investors increasingly funded ETH-based products, contributing to the alt’s quicker growth pace than Bitcoin.
The house added that alternative tokens and NFTs running on Ethereum manifests the potential with Metaverse. That way, Ethereum can be vital in bringing the digital economy to a global scale. Though no one knows the applications’ performance, BOOX believes ETH is a safe bet as far as the crypto world in the future is concerned.
Ethereum in 2022
Indeed Web3 is among the top buzzword in 2021 in the digital world. Analysts believe the idea will gain further momentum in the coming year. If ETH continues dominating its space, supporting nascent decentralized web, Ether will see massive surges.
Also, the upcoming ETH 2.0, targeted to reduce Ethereum’s energy consumption by the PoS method, will make ETH appealing to investors. Moreover, the expected institutional adoption will help propel ETH higher.
WalletInvestor.com sees Ethereum gaining more than 70% before 2020 ends, exploring levels of $7,000. However, that will mean slowed growth than what 2021 had. BOOX Research also remained bullish for Ether, stating that a move past $5,000 will open the road to $7,500 in 2022.
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