Since cryptocurrencies are volatile, it’s hard to predict where they will go. However, some digital assets, such as Ethereum, have already proven their reliability and experts believe it is here to stay. Ethereum – the 2nd largest crypto in the world- is worth investors’ attention for three reasons. Firstly, unlike Bitcoin, the Ethereum blockchain enables miners to mine not only ETH but also other tokens. Thanks to this open-source flexibility, many other smaller altcoins were created. Secondly, developers can build dApps and NFTs on the blockchain, making Ethereum the backbone of Web3. Last but not least, Ether is more eco-friendly than Bitcoin, as a few months ago, it transitioned from PoW to PoS, becoming more energy-efficient.
Ethereum is based on a technology that does more than just enable quick transactions. It also offers the feature of smart contracts, which is highly secure. In 2021, the coin hit an all-time high, and even if now its price is impacted by the crypto winter, experts believe it will stabilize this year, offering new opportunities to investors. Moreover, Ethereum’s developers are concentrating their efforts on upgrading it so it can become a better-performing network and meet users’ expectations. Investors should, therefore, analyze eth price chart to stay on top of the latest updates. That way, they will take an opportunity as soon as it arrives.
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How does the future look for ETH holders?
This year, a significant update on the Ethereum network is expected: the introduction of withdrawals, known as Shanghai. The testing is set to begin in January-February, while the launch is scheduled for the end of March. This new ETH improvement matters not only because it enables users to unstake their ETH tokens but also because it may involve an update to smart contracts. Moreover, Ethereum Shanghai Upgrade is also promising in terms of gas fee reduction, as it translates into cheaper transactions. This will be possible through sharding – a method that separates the network across different chains ( or shards) to improve the blockchain’s scalability. But since developers’ priority is to enable staked ETH withdrawals as soon as possible, they have scheduled the proto-danksharding upgrade for this year’s fall.
A more mature transaction structure designed to improve user experience
In 2023, post-merge transaction validation will keep maturing. New developments are expected, including block-building strategies designed to improve user experience and a massive increase in the number of private transactions versus public ones.
Liquid staking is expected to become dominant, contributing to the improvement of the staking market. This new year, around 60% of ETH staking will happen through liquid staking solutions. Moreover, innovations in re-staking protocols will influence tokeneconomic models, enabling applications to scale more rapidly.
2023 is expected to bring increased smart contract security
In 2021 and 2022, crypto hackers used their smart tactics to make billions, and their attempts were successful, resulting in $3bn yearly. However, financial experts believe this value may drop considerably in 2023 and keep declining in the following years as the crypto market evolves exponentially. This will result from improved market security practices, such as audits, monitoring tools, formal verification and automated firewalls.
More exciting events to come
This year will be exciting for those within the Ethereum community, bringing together market shakers, developers, policy makers and more members at different global events to discuss new ideas. Devcon – the largest Ethereum conference – is scheduled for this year, even if the event’s location is still unknown. Last year, the conference happened in Colombia, and the event is a highlight for Ethereum enthusiasts who meet up in different parts of the world to talk about the latest innovations in the community.
The EthCC (Ethereum Community Conference) is another event set to happen in July, lasting for three days – more precisely, from the 17th to the 20th. This event, which takes place in France, is dedicated to sharing knowledge on the Ethereum ecosystem, focusing on technology and the community. Since it’s non-profit, the prices are low and accessible for everyone who wants to participate in this conference.
But there’s more. Ethereum enthusiasts will get the opportunity to connect with fellow crypto supporters through global ETH hackathons and shared meetup groups.
Is it worth investing in Ethereum this year?
The crypto market followed a downward path in 2022, and Ethereum had the same fate. While this has indeed been difficult to experience for investors, it doesn’t mean the end of Ethereum is near. After all, this doesn’t reflect the crypto’s potential. Ethereum, just like all other cryptocurrencies, has experienced price fluctuations, going up and down and then rising again.
Crypto went through rough times in the past too, but Ethereum managed to push through and climb, which only proves its resilience and strength. Currently, Ethereum hosts around 3,000 dApps in many areas, including gaming and finance. This solid position in the finance sector is highly beneficial because decentralized finance can revolutionize how businesses operate. For example, crypto holders can make payments or borrow cash without relying on an intermediary. Ethereum is still in a good position despite the challenges in the crypto market, and this has a lot to do with the latest upgrades focused on improving energy use, cost and speed.
Regarding the question of whether it is still worth investing in Ethereum, this digital asset may experience a rally in the future. Considering its strengths, Ethereum could reach new heights, translating into considerable profits. But no one can guarantee this, and as always, investing only as much as you can afford to lose is essential. Crypto is risky, so you should approach it with caution and discipline. Some investors end up losing all of their money because they act irrationally, but it’s important to remind yourself often to stay calm in critical situations and not allocate essential funds to crypto. As discussed earlier, there is a chance scams will decrease this year, but it won’t hurt to be aware of potential threats and take security measures, like using a cold wallet instead of a hot one. However, if you’re looking for a crypto which can bring massive gains, Ethereum is indeed a great choice. As long as you follow the basic rules of investing, you may see considerable returns.