Ethereum has always seen its price as a source of disagreement among investors. Although some might believe the crypto asset is undervalued, other believe it has the potential to be a great investment. Jamie Coutts from Bloomberg is one of these analysts. He has a bullish prediction for the cryptocurrency, and he says it will grow by more than 100 percent from current prices.
Ethereum at $6,000
Coutts expressed optimism for Ethereum, the second largest cryptocurrency. Like others before him, the Bloomberg analyst sees the cryptocurrency’s utility and real-world uses as the argument for this very high valuation. Coutts stated that the cryptocurrency’s price will rise to $8,300. This represents a 100% increase over where it currently trades.
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The Bloomberg analyst referred to the cryptocurrency as a “unique blend of equity, commodity, and monetary characteristics,” a school of thought not at all scarce among investors and supporters of Ethereum.
Bloomberg created the discount cash flow model, which predicts that ETH tokens’ value could reach $6,128, more that doubling its price, even with the recent surge.
This is What’s Driving It?
Ethereum is not only one of the most useful cryptocurrencies, but it’s also been able to make it into the sights of large investors thanks to the many upgrades that have taken place on the network. One of these improvements is the transition to Ethereum’s consensus layer, which will see the network move away from the use of proof of work to utilize the proofof stake mechanism that has been used by many other blockchains.
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It will improve security and scalability of the network. This will allow the network to handle a greater number of transactions.
Source: TradingView.com| Source: ETHUSD on TradingView.com
It is expected that with the final “Merge” will come more demand for Ethereum. This will lead to increased network usage if this happens. Inadvertently, this will lead to higher transaction fees and higher returns for network validateators. This will lead to more validators locking their ETH, which is a sign of the predicted growth.
This trend will lead to Ethereum’s value rising as investors flock to the crypto currency. Bloomberg is more confident than optimistic about the predicted surge, due to the EIP-1559 Burn making Ethereum a deflationary token.
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