- With her previous prediction of 300% ETH price rise realized, Megan Kaspar estimates prices to go from $3,500 now to $10,000 by year-end.
- Ethereum’s shift from proof of work network to its proof of stake model reduces carbon emission by 99.9%.
- Ethereum’s greener network update will also help raise Ethereum’s institutional attention more than Bitcoin.
The second-largest cryptocurrency by market cap, Ethereum (ETH), entered 2021 at around $740. Within days when prices had just surged and stabilized at around $1,200, a crypto investor and analyst, Megan Kaspar, predicted a 300% increase, with the surge reaching mid-$3,000 level, as at that time, it was simply being “overlooked” by investors. Just over four months passed, and the prediction turned into reality.
This year, ETH prices have already undergone more than a four-fold increase. And this time, Kaspar wagers another 250-300% increase with ETH reaching $8,000 to $10,000 by the year-end.
Ethereum’s Proof Of Stake Model
On Friday, Megan Kaspar, co-founder of the digital asset investment company Magnetic, was on Yahoo Finance Live. Elaborating her thesis, she said, the Ethereum network is planning to shift from the termed “proof of work” method to confirm transactions to a “proof of stake” model. The Bitcoin introduced and used “proof of work” methodology rewards miners, who compete with computers and energy to record and confirm transactions on blockchain; Ethereum’s “proof of stake” chooses a random block validator based on the amount of ether it controls. Kaspar added, “blockchain validation” by “proof of stake” produces 99.9% lower carbon emissions, “making ethereum a green technology.”
She enunciated, these two revolutionary updates alone could tip “Ethereum to a trillion-dollar market cap,” i.e., trading at “$8,000 to $10,000 a coin” and in league with Bitcoin.
Network’s Rising Activities
Seemingly large, Kaspar’s prediction matches the Fundstrat Global Advisors’ price target of $10,500. Earlier this year, analysts at Fundstrat calculated ETH price target based on the network’s rising activities, as decentralized applications (dapps) usage on the network exploded from $10 billion in September 2020 to over $65 billion last month.
Greener Ethereum: Increased Institutional Appeal
Following the “greener Ethereum” update, Kaspar believes the network will also gain more relative institutional attention than Bitcoin. More than 50% of the network’s mining power is attributed to the Chinese miners, and big-time investors like Kevin O’Leary of “Shark Tank” aren’t happy with that. Over the years, as more investors get added, the “institutional dollars” could propel ETH to $100,000, said Kaspar.
With rising climate awareness, institutions now only seek to invest in “clean green technologies,” and “that’s what Ethereum is becoming.” While Bitcoin can’t be included there until it shifts from the “proof of work network,” Kaspar still predicts growth, with BTC hitting $200,000 by the year-end.
Price Prediction Is A Study Of Stats
Earlier this week, venture capitalist Dan Morehead, founder, and CEO of Pantera Capital, shared similar stats, with BTC reaching his $115,000 price target by August. Morehead explained, his “stock-to-flow” models track bitcoin like a commodity to calculate the targets. He said people often find it “crazy” when estimates are realized, but to him, it isn’t “it’s actually very predictable.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.