As the first and largest crypto by market cap, Bitcoin has always been the center of attention in the cryptocurrency industry. From its impressive rise to a record high of $81,858 to becoming a legal tender in two countries and enjoying heightened interest from institutional investors, the crypto king has reached numerous milestones that have constantly kept it front and center. As far as crypto achievements go, we can safely state that every year has been Bitcoin’s year so far, but Ethereum might be the one stealing the limelight soon.
That’s not to say Ethereum hasn’t fared well until now. On the contrary, Ethereum has had a pretty impressive performance over the years, considering it’s the leading altcoin, which is why people continue to buy Ethereum with debit card and via other methods. The Ethereum blockchain has always been a trailblazer in the crypto space, charting its own course with its cutting-edge technological advantages and visionary approach. But for some reason or another, it has never managed to emerge from Bitcoin’s shadow.
So, what could happen in the upcoming years that could change the script and help Ethereum outshine its main competitor? There are several developments that experts think will have a major impact on Ethereum’s trajectory in the future, including several upgrades and a new bull run – probably the biggest ever.
More than just a crypto
For those who are late to the party but still want to join in, we should start by pointing out that Ethereum is not like other digital currencies out there. In fact, Ethereum is not a mere digital asset to invest in, as some mistakenly believe. Ethereum is a decentralized software platform underpinned by blockchain technology, with its own native coin, Ether, which people often conflate with the platform itself without realizing there’s a lot more to it than meets the eye.
As a programmable blockchain, Ethereum enables the development of a wide variety of decentralized applications (dApps) through the use of smart contracts. That’s what makes Ethereum truly valuable and sets it apart from other crypto projects.
Unfortunately, although the Ethereum blockchain serves as a home for most of the dApps in existence today, a lot of companies encountered barriers in leveraging its dApp building capabilities in that they didn’t have the necessary knowledge and guidance in this respect. Neither the blockchain teams nor businesses were prepared for the development of a solid ecosystem of dApps and this caused many projects to fail or be put on hold.
However, now that the blockchain space is finally maturing, companies in the field are more aware of the challenges and ready to cater to a diverse range of businesses with specific use cases that want to integrate blockchain solutions into their structures. With Ethereum being the most popular platform for dApp development, this maturation is going to strengthen its standing in the dApp space and, therefore, boost its value. To capitalize on this growth, it’s essential to monitor ETH to USD exchange rate, ensuring you stay informed and make well-timed investment decisions.
Important developments on the horizon
Beyond the evolution of L2 blockchains, let’s see what else the rest of this year and the next one have in store for Ethereum. One key development that experts and crypto enthusiasts were ardently speculating on at the beginning of 2024 was the launching of a spot Ethereum exchange-traded fund (ETF). On January 10, the United States Securities and Exchange Commission (SEC) gave the green light for 11 spot Bitcoin ETFs, including from major asset managers like BlackRock, Grayscale, Hashdex, Valkyrie, and Invesco. A few months later, the SEC also approved the first batch of spot Ethereum ETFs.
So, now that these major milestones have been crossed, what are the next developments that could influence Ethereum’s evolution? According to the Ethereum roadmap, the Pectra Upgrade stands as the most notable upcoming improvement, which is expected to take place in early 2025. The upgrade based on the Ethereum Improvement Proposal 3074 is said to target several key enhancements, more precisely grouped transactions, social recovery, and the integration of Verkle Trees and advanced attack protection solutions. The purpose is to streamline user interactions and address issues related to data handling, network fees, and wallet management, thus creating a smoother, friendlier, and more secure experience for users.
If everything goes according to plan, the changes that the Pectra Upgrade is about to introduce are going to benefit the Ethereum network immensely by focusing on aspects that have posed an issue for Ethereum for a long time. This will likely solidify Ethereum’s standing as one of the most valuable and reliable cryptocurrencies in existence and attract the attention of a larger number of traders and investors.
Just as the approval of spot Ethereum ETFs brought a new wave of interest from market players, the upgrades that are going to be rolled out in the months to come are bound to put the spotlight on Ethereum and potentially push the Eth price further in the charts.
We might see gas fees drop considerably, making the Ethereum platform a lot cheaper and, therefore, more accessible for a larger number of users. This will likely attract more developers to the platform and usher in a new era of growth for Ethereum.
Ethereum making history
Price-wise, Ethereum has been on an ascending trend lately, but the next months could bring a lot more excitement and progress for the top altcoin. With a schedule filled with interesting new upgrades lining up on the horizon, the next year promises to be a historical chapter in Ethereum’s journey.
