ETH, which is the second-largest cryptocurrency, could very well increase over sevenfold to reach $10,500, as reported by Fundstrat Global Advisors LLC.
The prediction made by strategist David Grider is being based, at least in part, on the popularity that the Ethereum blockchain for DeFi applications is enjoying. Ethereum has also registered progress toward a network upgrade. This would permit it to process a matching number of transactions to that of Mastercard or Visa.
Grider wrote that Ether is “the best risk/reward investment play in crypto,” adding that “blockchain computing may be the future of the cloud.” There are risks, he mentioned, such as issues with the network upgrade of a crypto bear market.
DeFi lets people lend or borrow funds without using any typical intermediaries that would usually be used, such as a bank. Most DeFi applications that are popular at the moment run on the Ethereum blockchain.
ETH rose fivefold in 2020, compared to the quadrupling of BTC. Crypto-enthusiasts believe that digital coins are starting to mature as an asset class. Meanwhile, crypto-detractors believe that the market is still vulnerable in the face of speculation and volatility.