Ethereum (ETH) is the second largest crypto project by market cap. It is also responsible for ushering in many innovations in the crypto space. Most new projects use the Ethereum network to build upon.
However, the crypto giant has been in a slump for most of this year. ETH has lost 60% of its value in 2022. But that is not the important point. The point of interest is ETH’s capability to climb back up. And it’s not just Ethereum but also the larger crypto and traditional financial markets. The current worldwide economic situation is bleak. But, that will not be the case forever. Markets have historically always bounced back up. And usually, they go higher than their previous highs.
Why Ethereum?
Ethereum is a pioneer in decentralized applications (dApps) and non-fungible tokens (NFTs). According to State of the dApps, Ethereum currently supports around 2900 dApps. It has brought many new inventions and innovations to the crypto space. Let’s face it; the post-Ethereum crypto-world is much more vibrant than when it was just Bitcoin.
When it comes to the number of programmers working on its blockchain, Ethereum is a frontrunner. By the end of the previous year, over 4,000 programmers were working on the network. That is an increase of 42% from earlier in the year. This is significant because it demonstrates how frequently developers are using the blockchain.
Nonetheless, ETH does have its flaws. The network has suffered due to slow transaction speeds and high transaction costs. However, this issue might be a thing of the past as the Network moves from its proof-of-work (PoW) consensus model to a proof-of-stake (PoS) consensus model. This validation method will increase speed, decrease costs, and use less energy. Moreover, it will allow users and investors to stake their holdings and get returns for the same. This whole ordeal of moving to a PoS model is being called “the merge,” and it is set to happen in the coming months.
Will ETH grant you an early retirement?
Well, it is entirely possible that it just may. Ethereum is one of the most used blockchains out there. And when the markets bounce back up, it might just give many investors their big break.
Also, there are trading methods that can make players rich. For example, a trader flipped 150 ETH into 1700 ETH within a month!
That aside, the long-term holding has usually proven to be very lucrative. People who have held on to their ETH long enough have reported significant gains.
Nonetheless, investing requires patience, which is one of the hardest things to master. Once we develop patience, we can surely develop habits that will grant us all early retirements.
At press time, ETH was trading at $1,082.09, down by 8.9% in the last seven days.