Ethereum’s price has dropped by 44% from its peak of $5 000. The drop in price is due to many macro-economic factors, which have resulted in a downswing across the entire industry. While macroeconomic factors are affecting the price of any financial assets in the market, the growth in Ethereum is also affected due to other factors such as scalability issues and high gas fees and it put the network in a very uncertain place. It’s still the second-biggest cryptocurrency and it remains dominant with a huge margin when compared with competition from rival chains such as Solana, Avalanche, Polkadot, and BNB. But It’s losing DeFi market share to its competitors.
Most of the cryptocurrency price has skyrocketed in the last two years due to the many innovations that are happening in the market. Decentralized finance, mining, metaverse, and NFT craze have been adopted by many and this has accelerated the growth of Ethereum along with other chains. Many investors are waiting to see the mass adoption by users.
Also, a long-awaited Ethereum upgrade designed to help the Ethereum network scale and reduce the high gas fees has again been pushed back and is now expected to launch in late 2022. Definitely speed and high cost have turned away many customers and projects from Ethereum network. Only if Ethereum upgrades the network and fulfills its promise of a highly scalable low fees network, then Ethereum can sustain its growth and achieve the long-term price prediction of almost $10000 by 2025.
The cryptocurrency space is constantly evolving and changing. There are thousands of different decentralized projects coming about and the growth of any blockchain network is dependent hugely on the mass adoption of the projects. I still think people trust Ethereum after Bitcoin and will continue to invest in the hype and potential of the Ethereum network
