Can Ethereum reach 50k? Detailed Analysis

Can Ethereum reach 50k? Detailed Analysis

Can Ethereum reach 50k? The answer is Yes, Read on


The latest price of Ethereum

Can Ethereum reach 50k? The 2nd Most Popular Cryptocurrency in the World

When it comes to cryptocurrencies, there are a few names that people mostly know about. One of them is Bitcoin and the other is definitely Ethereum. This cryptocurrency has been popularly considered to be the blockchain that consists of the most use cases – Smart Contracts, DeFi, NFTs, DApps, etc.

High Volume DApps on Ethereum Include Uniswap V3 (An Automated market maker), Curve (Stablecoin Trading), and 1Inch Network (An Automated Market Maker).

Can Ethereum reach $50k? Most Cryptocurrencies use the ERC-20 Token of Ethereum

Some of the top cryptocurrencies using the ERC-20 Token of Ethereum Include

  • Binance
  • Shiba Inu
  • HEX
  • MKR

Can Ethereum reach 50k?: A Strong Layer-1 expands Ethereum’s reach and capabilities

Ethereum has an extremely strong layer-2 blockchain ecosystem. Layer-2 Blockchains are Blockchains themselves that use the security guarantees of Ethereum while also solving Ethereum’s Limitations on transaction processing volumes and speed. They do this by submitting bundles of finalized transactions proof on Layer 1 (Ethereum) to handle security, data availability, and decentralization, while layer 2s handles scaling. Layer 2s takes away the transactional load from layer 1. They use a concept of Roll-Ups which is bundling of 100s of transactions into a single transaction on layer 1.

Some of the best Layer-2 Blockchains include Polygon (DeFi TVL of $1.2B), Arbitrum, Loopring, Immutable X, and Dai.

In Sum, Ethereum has an outstanding ecosystem in place that can deliver growth for years to come.

YouTube video

Can Ethereum rise to $50k: The Math

In order for Ethereum to rise to $50k, it is not just the Use Cases but also the economic environment that must be friendly. Ethereum price has been highly influenced by the liquidity and wealth of individual and institutional investors. For example, whenever the Fed tightens rates or reduces its balance sheet, Ethereum tends to lose value due to lower demand. But then economic cycles are a part and parcel of human history.

Ethereum at $50k will have a market cap of $6 Trillion. In theory, this is possible. For example, if ETH were to rise at 15% per annum, it would take ETH 25 years (2047) to reach the $50k level. It took Bitcoin 4 years to rise from $1700 to $50k. $6 Trillion may sound quite huge today but 25 years down the line, this isn’t really huge. Also, given that Ethereum has become deflationary and also that it may rise faster than 15%, Ethereum is likely to reach $50k much faster than 2047. Ethereum is unlikely to rise consistently given economic uncertainties. Here is a hypothetical scenario

  • $1k to $5k by 2026 (50% growth)
  • $5k to $14k by 2030 (30% Growth)
  • $14k to $28k by 2035 (15% Growth)
  • $28k by $50k by 2042 (10% Growth)

While Growth is unlikely to follow these exact patterns, it is not unusual to see a new category grow this way, with high growth in the initial years before easing to lower levels over time.

Read our Other Crypto Price Predictions here

Can Ethereum reach 50k? A Few Calculations

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in stocks or coins. Please consult a registered investment advisor to guide you on your financial decisions. 

CrowdWisdom360

CrowdWisdom360

CrowdWisdom360 Admin