Ethereum (CCC:ETH-USD) is on the march on Monday, topping $4,000 for the first time. The push extended the cryptocurrency’s year-to-date rise to more than 430%, versus a near 105% increase in the value of Bitcoin (CCC:BTC-USD).
But don’t say we didn’t warn you. Ethereum (ETH) price predictions were featured in our coverage last week after market research firm FundStrat told clients to watch for a 2021 price target of $10,000 for ETH.
What’s new is that now another prominent crypto voice, Megan Kaspar, co-founder of the digital asset investment firm Magnetic, has boosted her price target to the $8,000 to $10,000 price range by year’s end.
Fundamentals Fuel Ethereum (ETH) Price Predictions
Recall that it was a week ago that the Ethereum price blew past the $3,000 threshold following an upgrade of the underlying Ethereum blockchain. As a quick recap, the blockchain moved from the current proof-of-work consensus process to proof-of-stake. Kaspar sees that development as a fundamental change for ETH.
So what does this mean for Ethereum (ETH) price predictions?
“The shift to proof of stake for block validation reduces carbon emissions by 99.9%, making Ethereum a green technology,” Kaspar explained Friday on Yahoo Finance Live. “So these two updates on the network alone could push Ethereum to a trillion dollar market cap which is where bitcoin is at today — that would make Ethereum around $8,000 to $10,000 a coin.”
The change could also reverberate to the detriment of Bitcoin, with its dependency on the proof-of-work consensus process. “Institutions are mandating that they invest in clean green technologies and that’s what Ethereum is becoming,” Kaspar said. “Unfortunately, Bitcoin’s proof of work network will not be that unless they choose to shift as well.”
While the price of ETH has appreciated 27.7% in the last seven days, BTC has lost 1.4% of its value. Data compiled by TradingView shows the index of Bitcoin’s Market Cap Dominance now hovers between 33.98%-45.09% after topping 72% in early January. The index shows the ratio of the total market capitalization of BTC versus the market cap of the entire cryptocurrency market.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.