The pandemic has made several investors to turn towards Bitcoin, Ethereum, and the entire cryptocurrency industry as a whole.
It is expected that in 2021, Ethereum will be the go place where digital contracts will be executed for enterprises from across the world. All the activities in the world are executed by contracts. Anywhere there is a contract to be executed, Ethereum has an opportunity for growth.
There are other smart contract platforms who are successful, but Ethereum is evolving with a vision to be the best. And, 2021 has more in store for Ethereum.
Ethereum 2.0 phase 0 has kicked in. When the upgrade happens from PoW to PoS lot of positive changes are expected to happen. Scalability is expected to improve when phase 1 of Ethereum happens.
Enterprises and institutions will feel more attracted after the Eth 2.0 upgrade and this will in turn drive the price to attractive levels.
Year 2021 is expected to increase activities related to decentralized finance. Though other networks are already in competition, Ethereum is expected to tap the potential of wrapped Bitcoin markets. A major stake from the Bitcoin market is expected to get collateralized in Defi in the Ethereum Network.
There are two layers in usage. The protocol layer and the application layer. Ethereum will continue to be the leading layer 1 blockchain. There will be an increase in layer 2 solutions providing for features like scalability, privacy, and interoperability.
Commenting, Sydney Ifergan, the crypto expert, “Year 2021 for Ethereum (ETH) will see a change in the way micro transactions are handled in the network leading to explosion in layer 2 solutions.”
Ethereum killers will have to work harder.
Ethereum (ETH) Gas Price
The iterations made by the Ethereum developers generate strategic outcomes geared towards a planned result. When planned results do not happen more changes should be made. Lot of projects means lot of work and therefore varying congestion and the gas price fluctuates.
There are micro transactions and major transactions. Several micro transactions need not happen in the mainnet. Advancements in the layer 2 technologies will ensure that micro-transactions are handled in a way to avoid congestions.
We have previously see that with increased DeFi activity, the transaction speed slowed down and the Defi Price skyrocketed.
The gas price is a topic, which cannot be taken out of the discussion. With the passing of time, Ethereum will only get bigger. The base fee by Ethereum Improvement Proposal (EIP) 1559 will increase or decrease depending upon the network congestion and gas price will increases or decrease accordingly.