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Is Ethereum a good investment in 2022?

It is never too late to invest in the cryptocurrency market. Ethereum, in particular, is one of the most lucrative investment options you can choose from the list of cryptocurrencies. Its potential to open up more opportunities for investors cannot be exhausted anytime soon.

Experts estimate that Ethereum has a growth projection of over 400%, a huge jump since its launch in 2015. And today, its developers are working to improve the platform and increase its services in the digital landscape. Additionally, the blockchain-based network seeks to reduce its environmental impact by overhauling its operations and reducing its energy consumption.

Suppose you are planning to invest in Ethereum. You can read this Ethereum guide to learn more. Additionally, this article explores why Ethereum can be a good investment in 2022.

  1. Market capitalization

There is an impending blockchain-based network upgrade that is supposed to affect how Ethereum works. This will simplify the transition from proof-of-work (PoW) protocol to proof-of-stake (PoS) protocol as developers aim to increase efficiency and reduce transaction costs.

It is believed that the planned changes will significantly affect the market capitalization of Ethereum, which stands at $209.66 billion. If you invest now, prices could rise over the long term and multiply the value of your portfolio.

  1. Application of Ethereum

Ethereum is more than a digital payment platform. Users also have the opportunity to be creative and develop masterpieces in terms of smart contracts, DApps or decentralized applications, and non-fungible tokens or NFTs.

Several industries, such as games, music, and entertainment, can also benefit from Ethereum. The application has transformed the products and services rendered in these niches. And the future of Ethereum looks bright as further developments are expected to come from the upcoming service merger.

  1. Growth potential and price prediction

In general, Ethereum experiences volatility in the cryptocurrency market and maintains the second best digital currency after Bitcoin. It is known to resist the pressure of new coins and tokens making their debut in the digital currency landscape.

Experts believe in the possibility of 300% capital gains on all Ethereum holdings. However, predicting its price can be quite difficult due to the upcoming Ethereum merger and competition from Altcoins. The cryptocurrency community foresees possibilities for price fluctuation on Ethereum, but the weight could rely on an increase of up to 400%.

With this promising growth on the horizon, investing in Ethereum now can significantly grow and transform your portfolio, multiplying your income and increasing the value of your investment. However, the emphasis is on researching and learning beforehand what is on offer in the upcoming project.

  1. Ethereum Trends

Upgrading to the newer, less energy-intensive version promises to bring good news to Ethereum holdings. The price will most likely skyrocket as more people might want some of the innovations in their portfolio.

The adoption of Ethereum across multiple industries is also a pioneer to watch. This can contribute significantly to investor participation in the blockchain-backed network. The traded volume is also expected to increase, hence an optimistic trend for the underlying digital currency. That said, investing in Ethereum requires patience as you enjoy the upward trend projected by cryptocurrency experts.

  1. Can survive recession

Since 2015, Ethereum has been a viable investment option providing various functions for investors and the cryptocurrency community. The project is constantly reviewed to improve its cryptocurrency space tasks.

Many established cryptocurrencies have proven to weather the recession by holding their value. Ethereum’s stimulus projections also aim to create sustainable competition in the cryptocurrency market. The value has been stable for quite some time and experts hope Ethereum holdings will increase after the switch to the new network.

  1. Safe for your wallet and cryptocurrency transactions

The Ethereum platform generally offers one of the most secure wallets in the cryptocurrency landscape. This follows a network invasion that resulted in millions in losses. However, it should be noted that fraud and theft are among the risks in the cryptocurrency market, and developers are always working to ensure wallet protection.

Apart from providing highly secure transaction systems, Ethereum also faces stiff competition from other cryptocurrencies due to gas fees. However, experts hope that “the merger” will change these issues and establish market authority.

Final Thoughts

By looking at the ongoing conversations about Ethereum in the cryptocurrency community, you can sort of gauge and tell if now is the right time to invest. It is clear that Ethereum is more than a currency in the digital landscape, and more and more industries are turning to offerings such as smart contracts.

Additionally, the upcoming merger also looks promising as the developers continue to work to improve the network. However, it is always best to exercise caution when investing in the cryptocurrency market to minimize drastic losses.

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