Ethereum price drops despite positive sentiment surrounding the upcoming ‘London Hardfork’
With the launch of the much-awaited London Hardfork — which contains the all-important EIP 1559 — some of Ethereum's gas fee and network congestion issues may be resolved.
- ETH is currently showcasing weekly gains of over 2%
- Experts believe that as Ethereum's existing bottlenecks continue to be eased out, the platform is solidifying itself as the core transaction layer of the crypto ecosystem.
- A report by JP Morgan suggests that staking yields could rise as high as $40 billion by 2025.
After having scaled up to the AU $3,100 mark recently, it seemed inevitable that Ethereum would be able to secure the all-important AU $3,300 psychological barrier. However, shortly after tipping the scale at the said value, the premier altcoin started to slip fairly quickly, losing over 8% of its value in less than 24 hours. At press time, ETH is trading for AU $2,718.
Providing his thought's on what the future may have in store for the second-largest cryptocurrency in the world by total market capitalization, Varit Bulakul, President of Investment Banking and Digital Assets at The Brooker Group, told Finder that he is fairly confident that the coming few months will be good for ETH, adding:
"As far as Ethereum goes, we should continue to see good results. With lower fees, we think ETH is solidifying its dominance as the top layer-one smart contract protocol of the cryptocurrency ecosystem."
Similarly, on the subject, a report released by banking behemoth JP Morgan suggests that yield giving proof-of-stake coins — of which ETH will soon be a part of after its much-awaited 2.0 upgrade — are becoming increasingly more attractive to investors thanks to the current 'near zero-rate environment'.
The authors of the report claim that owners of staked PoS tokens are currently generating a little over US $9 billion in revenue. Not only that, according to them, this figure could more than double (to around US $20 billion) after Ethereum successfully makes its move to the PoS framework sometime next year.
Lastly, the report also suggests that by the time 2025 rolls by, the total staking yield of the global blockchain sector could lay in excess of the US $40 billion mark, a striking prediction, to say the least.
Things are looking promising
In closing, it bears mentioning that over the course of June 2021, Ethereum's total network activity outweighed that of the Bitcoin ecosystem three times over, a feat that has rarely been witnessed in the past. To put things into numerical context, on June 27, the total number of active Bitcoin wallet addresses stood close to 500,000 while the number of Ethereum addresses lay above the 700,000 threshold.
Disclosure: The author owns a range of cryptocurrencies at the time of writing