Ethereum: What the Future Holds for the Crypto Giant

Ethereum: What the Future Holds for the Crypto Giant

The crypto economy is surging globally, and it is all thanks to renowned names like Ethereum (ETH) investing their best efforts. The second-largest cryptocurrency recently touched the mark of 2,197 dollars, its highest to date. In the previous week alone, the currency has risen over 6%, showcasing its market relevance.

On 12th April, ETH crossed the USD 250 Billion market cap, making it even more valuable than well-established banks like Goldman Sachs and Wells Fargo. A bit before this achievement (11th April 19:32 UTC), a crypto user migrated over 49,998 Ethereum to Bitfinex (crypto exchange), making the transaction worth 107 million dollars. The sheer stature of proceedings emerging in the ETH circle has surged the overall crypto activity worldwide.

Akin to its arch-rival Bitcoin, ETH will experience a reduction in overall supply on exchange platforms. The same will occur due to huge funds moving into DeFi and hard wallets. This directly translates to major benefits to Ethereum holders as it cements the fact that no significant selloffs will be occurring in nearby times.

Even with the crypto tycoon making such immense strides, some speculate that XRP or BNB might overtake it.

How BNB & XRP will Fare against ETH?

While ETH is a renowned entity currently, numerous promising ventures like XRP and BNB will give it tough competition in the upcoming future. ETH primarily relies on end users’ networks, while BNB has already showcased numerous use cases and versatility. On the other hand, XRP is capable of outperforming ETH in a short period.

Besides the currencies mentioned above, names like Polkadot and Cardano are also clouding the industry. The latter was specifically developed by an ETH co-founder to tackle the scalability and speed issues showcased by ETH. Judging from the recent encounters, Ethereum might keep its crown for some time, but the upcoming few years will prove to be highly competitive for the crypto.

However, ETH does not appear to be giving up easily with the latest upgrades like Berlin.

ETH Berlin Upgrade: What is It and Its Effects

ETH’s latest upgrade Berlin is set and ready to be deployed on April 14, 2021 (the exact date might shift). The first upgrade testnet Ropsten was made available on March 10, continuing with March 17 on Goerli and March 24 on Rinkeby. The latest of the lot, Mainnet, is ready to be proposed on Apr 14.

Node operators must upgrade their client version to use the Berlin upgrade as it packs several EIPs like:

  • EI-2565: Lowering the pre-compilation gas costs for ModExp (0x00..05).
  • EIP-2929: Increasing gas costs for SELFEDESTRUCT, SLOAD BALANCE, *CALL, and EXT* for first-time transactions.
  • EIP-2718: Proffering a new transaction type, facilitating better multi-transition type support.
  • EIP-2930: Adding a new type of transaction comprising the list of storage keys and addresses related to the transaction plans.

The upcoming upgrades are non-reversible, packing a huge impact for node operators and miners. Contrarily, the same is not true for ETH holders using exchanges, web, hardware, or mobile wallets unless specifically mentioned. But due to security concerns, storing funds in hot wallets is not recommended.

The upgrade name came into existence due to the lack of any other word. However, its impact on the crypto market is thoroughly thought-out. This paves the path for ETH to transform into a PoS network, making it more secure, scalable, and decentralized crypto. Perceive the upgrade as a foothold used to reach the greater vision of ETH. Nonetheless, acts like this will certainly assist ETH in maintaining its market repertoire.

David Cox: David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.