Ethereum (ETH) is the second largest crypto project by market capitalization. It is also responsible for ushering in many innovations in the crypto space. Most new projects use the Ethereum network to build on.
However, the crypto giant has been in a slump for most of this year. ETH will have lost 60% of its value by 2022. But that’s not the point. The point of interest is ETH’s ability to climb back up. And it’s not just Ethereum, but the larger crypto and traditional financial markets as well. The current global economic situation is bleak. But that won’t be the case forever. Historically, markets have always risen again. And usually they go higher than their previous highs.
Why Ethereum?
Ethereum is a pioneer in decentralized applications (dApps) and non-fungible tokens (NFTs). According to State of the dApps, Ethereum currently supports about 2900 dApps. It has brought many new inventions and innovations into the crypto space. Let’s be honest; the post-Ethereum crypto world is much more vibrant than when it was just Bitcoin.
When it comes to the number of programmers working on its blockchain, Ethereum is at the forefront. At the end of last year, more than 4,000 programmers were working on the network. That is an increase of 42% compared to earlier this year. This is important because it shows how often developers use the blockchain.
Nevertheless, ETH has its flaws. The network has suffered from slow transaction speeds and high transaction costs. However, this problem may be a thing of the past if the network of his proof of work (PoW) consensus model to a proof-of-stake (PoS) consensus model. This validation method increases speed, reduces costs and consumes less energy. In addition, users and investors will be able to stake their interests and get a return on them. This whole ordeal of moving to a PoS model is called “the merge” and it will happen in the coming months.
Does ETH Give You Early Retirement?
Well, it’s very possible it just might. Ethereum is one of the most widely used blockchains out there. And when the markets bounce back, it could give many investors their big break.
There are also trading methods that can make players rich. For example, a trader converted 150 ETH to 1700 ETH within a month!
Aside from that, long-term ownership has usually proven to be very lucrative. People who have held their ETH long enough have reported significant gains.
Nevertheless, to invest requires patience, which is one of the hardest things to master. Once we have developed patience, we can certainly develop habits that allow us all early retirements.
At press time, ETH . was trade at $1,082.09, down 8.9% over the past seven days.