In an era where the entire planet Earth is affected by numerous cyber risks, the crypto industry remains no exception! This is happening on the heels of an event that was a hot topic of discussion for the last year about a software upgrade that resembled a global bug fix during the Y2K shift over 2 decades ago. The greatest business route for digital currency could fall victim to its popularity!
The Ethereum network's latest upgrade, the "Merge," has smoothly transitioned to an eco-friendlier system of transactions over the blockchain network. According to a report from Token Terminal on April 18, Ethereum (or ether or 'ETH'), a decentralized platform, has grossed $369 million in the first quarter (Q1) of 2024. Should this network hold up a profitable position and that of an ever-growing decentralized finance (DeFi) sector in Q1, the Ethereum blockchain will be on track to generate around $1 billion annual profit.
Some Interesting Reasons to Focus on Ethereum Than Bitcoin
The second largest cryptocurrency by market capitalization, Ethereum functions as an open-source blockchain technology with "Ether" (or ETH), its native digital currency. It is a common platform for several other cryptos and makes it easier to implement Decentralized Smart Contracts. The main goal of Ethereum is to become a global center for Decentralized Applications or Ethereum dApps.
This vision wants to influence programmers worldwide so they can create and operate software that cannot be controlled by anyone and cannot be censored, cheated, or stopped. We believe Ethereum is noticeably different from the most popular digital currency, "Bitcoin," and has different applications. Here are some benefits of choosing Ethereum in 2024:
Innovation
Ethereum is a platform for "Turing-complete computing," which means it is universally programmable and can do all types of calculations. This feature makes Ethereum constantly innovative and valuable in several other areas. While Bitcoin mainly has one purpose: "digital gold" or "internet money."
Industries Creating "On Top"
Ethereum has offered the Internet a worldwide, joint system to settle and manage the economy. Today, numerous industries like eCommerce/brand loyalty, finance, B2B enterprises, music, AR/VR/ gaming, NFTs, digital art and collectibles, digital identity, digital content, etc., use ETH to build and test new strategies for running businesses.
Number of Applications
Currently, more than 7,300 applications are being developed on Ethereum. Bitcoin's script programming language has few innovations because of its limitations. That is why we think Ethereum has a broader market that can be targeted compared to Bitcoin.
Yield
Driven by user fees and consensus rewards, Ethereum's unique features are the potential for ETH holders to earn an actual yield. Bitcoin does not provide this benefit.
Network Effects
Bitcoin has a smaller overall supply than Ethereum (21 million vs 112 million for ETH). The network effects of Ethereum are more prominent because the amount of value locked in its ecosystem is much more ($37 billion compared to $315 million for Bitcoin). Additionally, Ethereum's number of non-zero wallets (a proxy for users) is more than x 2 times that of Bitcoin at 111 million.
Utility
Presently, ETH is more widespread than Bitcoin. This is exemplified when nearly 35% of the entire ETH supply held in circulation is reserved by smart contracts. These contracts act as service providers, liquidity drivers, and a source of economic stability across the blockchain network ecosystem. Needless to say, compared to Bitcoin, ETH is a more capital-efficient asset! Moreover, Bitcoin leaves the blockchain network searching for yield within Ethereum's network ecosystem because it can be earned by DeFi protocols. Then, it can be staked in Ethereum's lending markets and liquidity farms within the Ethereum's blockchain platform itself (Ethereum 2022)
Financials
Last year, user fees for Ethereum were $2.4 billion compared to Bitcoin's $796 million. Expenses on the Bitcoin network included paying out $9.7 billion in token incentives to its miners, while Ethereum only paid approximately $1.39 billion during this same time frame.
Upcoming Crypto Predictions for Ethereum In 2024
Ethereum has exceeded last year's daily transaction volume and is approaching its peak in 2021. In 2024, they recorded an average of 1.15 million daily transactions, a slight rise from last year's 1.05 million to the highest point observed at 1.25 million transactions in 2021.
Since 2015, Ethereum was first launched, it didn't yield any profits till 2023. During this time period, its revenue was $623 million. This represents a substantial increase but still shows that the company's revenues are around 75% less than their highest point in 2021, which was recorded as $9.9 billion. Nadeau explained that one reason for this decrease could be the transition to proof-of-stake consensus in September 2022, which resulted in an eighty percent fall in token incentives given out to miners, now called validators.
Taking advantage of Bitcoin's notable surge, Ethereum's price showed remarkable bullish strength in March 2024. The successful activation of the Ethereum Dencun Upgrade boosted this. Before the upgrade, ETH also briefly crossed the crucial $4000 threshold but went through a sell-off. However, the halving of Bitcoin is expected to bring about a recovery. Ethereum has found strong support at the R1 Fibonacci level during this correction phase. This flip happened in March 2024 and indicates a minor rebound underway.
The Ethereum price looks good in the short and medium term, staying above the 50-day- and 200-day EMAs with a golden crossover. At present, it's at its highest point in nearly two years, which means when people finish taking profits from their trades, Ethereum could rise to $4000 again by fresh buying interest coming back. For a further upshift, we assume the $ 3,000 value as the critical low for the Ethereum supply to be mightier, backed by the 61.8% Base pivot of the Fibonacci levels.
Conclusion
We live in the era of cryptocurrencies, and it is incredibly complicated to get on the same page in this field quickly. One of the main issues investors encounter is the lack of a reliable data source.
As we enter 2024, Ethereum looks quite promising as a way to have a bright horizon. By having its undeniably innovative DNA and buzzing community, a vibrant ecosystem, and strategic alliances that surround Ethereum, we have the potential to reinvent the entire digital economy. Incorporating blockchain technology with upcoming areas like AI and IoT promises to uncover unprecedented opportunities ahead, and it has carved the Ethereum network into the focal point of the technological revolution in present times. Decentralization is the future, and let Ethereum take you there!
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