Last month, the price of Ethereum rose 43.77%. I bought in at S$4,079.52 on 2nd May and sold it off at S$4,594 today on 8th May. Exactly 5 days, I made a nifty profit of 13% on Ethereum.
For those that are not familiar with Ethereum, it is the blockchain network in which decentralized applications are embedded. The token or currency that enables or drives these decentralized applications is known as Ether (ETH).
Ethereum has the second largest market capitalization after bitcoin. Will Ethereum continue to rise? Let us look at its potential and problems Ethereum currently is facing.
Ethereum Potential #1: Smart Contracts
Ethereum is a blockchain like Bitcoin. The difference is that it is programmable. A “Smart contract” a piece of code that is running on Ethereum. It is because of its programmable feature that makes Ethereum possible for a wide range of purposes such as payment and financial services.
Ethereum Potential #2: DeFi
DeFi is known as decentralized finance and I believe many financial bloggers have thrown their money into it. I have also used Crypto.com DeFi Wallet to stake and earn crypto.
Since Ethereum is programmable, it creates opportunities for creating financial products that are completely new.
Ethereum Potential #3: NFT
NFT stands for Non-Fungible Tokens. “Smart contracts” are pieces of code that are stored on the blockchain but they are actually worthless. NFT is a way to represent anything unique as an Ethereum-based asset. For example, NFTs provide a unique ID for a piece of digital art.
You can explore more of NFT on Crypto.com here.
Ethereum Problem #1: Slow Execution of Transactions
Ethereum has been plagued by the network inability to scale to meet growing demands. This resulted in high transaction fees and slow execution of transactions.
Ethereum Problem #2: Slow Migration to Ethereum 2.0
Ethereum 2.0 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable. Personally, I felt the upgrades are slow and may lose out to competitors out there that are scaling faster then Ethereum.
There is a huge potential for Ethereum and we can see the prices reach new heights if it is able to solve its current problems. Having said this, investors should be caution that cryptocurrency is highly volatile and you need to be able to stomach the risks involved.
If you are keen to purchase Ethereum (ETH), Crypto.com Exchange is a good way to start for buying and selling Ether.
Sign up using my Crypto.com Exchange referral link and if you stake 5,000 CRO, you and I will each receive $50 in CRO.