While Ethereum enjoyed a strong year in 2020, the digital asset appears to be closing the year on less of a bullish note. However, investors continue to feel positive about the altcoin and most believe that it will do well over the next few years. Armando Aguilar from Fundstrat is one of them. He believes Ethereum will reach a double-digit price in the next year.
Ethereum heading for a big year
Aguilar stated that 2017 has been an uncertain year for cryptocurrency markets in a Business Insider report. The market saw several crashes and bull rallies that rocked it throughout the year. Aguilar expects this to continue into the next year. He believes that next year will not be as bad.
Jack Dorsey Disses Ethereum, Web3 In Twitter Rampage| Jack Dorsey Disses Ethereum, Web3 In Twitter Rampage
Insider heard Aguilar share that he was hoping for more adoption by institutional investors in bitcoin. This would help him to see a year of success. The important thing for Ethereum is that Ethereum has lost its footing at $4,000. Aguilar stated that Ethereum’s price will continue to rise well into 2022.
ETH recovers towards $4k | Source: ETHUSD on TradingView.com
The second-largest cryptocurrency market cap is $9,000, according to Heinz. This will take place in the second quarter 2022. This growth will be fueled by decentralized finance (DeFi), NFTs, and metaverse.
Aguilar believes that DeFi will continue to grow despite the rapid growth in 2021. Institutional investors are expected to increase their stakes in the market in 2022. As this demand grows, Atheneum’s value will grow with it, putting it at $9,000 in the first half of 2022. “I believe that DeFi will play a major role for institutional capital next year,” said Aguilar. “As institutional and retail demand drove DeFi into new heights, the trends will continue to spill into 2022.”
Six figures for Bitcoin
For Ethereum to hit Aguilar’s prediction, bitcoin would also have to see explosive growth in 2022. The analyst expects that bitcoin will finally reach six figures within the same period. As institutional investors turn to bitcoin for rising inflation rates, he attributes this to greater adoption. Bitcoin will soon reach the desired $100,000 mark.
Related Reading| By The Numbers: How Ethereum 2.0 One-Year Stats Stack Up
Institutional investors have already been exposed to this digital asset via the approved ETFs by the SEC. Aguilar mentions that Valkyrie funds track US companies exposed to bitcoin via the Balance Sheet Opportunities ETF.
Like Ethereum, bitcoin seems to be headed for a lower year-end than expected. Bitcoin continues to struggle at $48,000 as of the holiday season, which suggests that it could fall below $50,000 by the end of the year.
Featured image by BankrateAn. Chart from TradingView.com