Is ethereum a good investment in 2022

Ethereum is indeed, without doubt, a good investment in 2022. The question is, how ought you to curb your enthusiasm? The cryptocurrency has much to recommend itself. Ether, or ETH, the Ethereum blockchain token, is among the world’s leading three cryptocurrencies. As per the latest data, Ethereum has the second-highest market value at $560 billion. First up is, unsurprisingly, Bitcoin’s $1.24 trillion. Ethereum leads Binance coin’s $108.3 billion, placed third. The fundamentals are all there. What you need is an investment strategy. 

What is Ethereum worth in 2022?

There’s price plummeted by 13% in early January 2022. While it is true that other cryptocurrencies also suffered due to the political turmoil in Kazakhstan, ETH seems to have suffered more. 

Following the sell-offs on US stock markets, there was an 86% appreciation in the 24-hour trading volume for ETH, with investors rushing in to buy the ethereum price dip. 

Smaller cap cryptocurrencies have been scarred, too, albeit not that much. That was particularly true on New Year’s Eve, with ETH unchanged at $3811.13, FTM appreciating by 34%, NEAR appreciating by 20%, ONE (the Harmony coin) appreciating by 39%, while CELO ascended by 17%. 

The taller they are, the harder they fall. ETH faltering due to the Kazakh Conundrum is to be understood in that vein. It would naturally be more affected by any commotion in a crypto mining-intensive land. However, even the small-cap competition cannot hold a candle to the ETH Sun. 

Ethereum is all set to be changed by a seismic upgrade to Proof of Stake technology in 2022, with Ethereum 2.0 arrival. 

How much will ethereum be worth in the future?

Throughout 2021, the Ethereum blockchain has been upgrading to Ethereum 2.0, a project slated to continue in 2022. The London hard fork, or split, in August 2021 brought coin burning. The latter is expected to hold up ETH value by cutting down supply as its use grows. 

Late October 2021, on the main network, the Altair network was activated. The Ethereum Beacon Chain upgrade tests the transition to Proof of Stake block mining. The Ethereum 2.0 upgrade will be complete this year itself once the main Ethereum chan merges with the Beacon Chain. 

Per schedule, the Arrow Glacier network will go into effect on December 8. All this while – actually well into June 2022, there will be transitioning from Proof of Work mining to Proof of Stake mining. 

Investors eagerly await the ETH2 shift as it will seek the speed, sustainability, and scalability of transactions. Sharding, the final upgrade stage, made to minimise network congestion and to bottleneck by splitting transactions across horizontal database, will emerge post-Merge. 

Per an expert, ether could appreciate to $6,912 over 2022. The price could exceed the $10,000 mark in January 2022, reaching $19,254 by 2026-end. According to another, the price could average $6,380 in 2023. For The longer-term, ETH could appreciate to a $7569 average in 2025 and $16,858 in 2028. 

Yet another estimation has forecasted ETH averaging $18,213 in 2025, rocketing to $110,187 in 2030. 

Will Ethereum be the future?

Ethereum has attracted lively interest from institutional investors this year coterminous with applications like decentralised finance – DeFi – and non-fungible tokens, or NFTs. 

Ethereum experienced small outflows totalling $17m late December 2021, the first time following 6 weeks of inflows. Nevertheless, it reflects only 0.09% of AuM and is likely not meaningful. 

JP Morgan gave away Polygon-minted NFTs, the Ethereum based network at its Crypto Economy Forum. The OpenSea NFT marketplace has listed these. Not long back, the Bank of America made its first NFT, promoting its Sibos conference sponsoring.

Per experts, technical ETH price analysis shows short term sentiment was neutral at close to $3918, with 19 technical analysis indicators giving bullish signals and 10 emitting bearish signals. 

Experts keep expecting ether price appreciation over the long term with the ongoing adoption of the DAPPS and NFT blockchain.  

Conclusion 

While it’s true that ETH has all the right fundamentals, it’s still a cryptocurrency. With all the attendant volatility, it’s only right that you should exercise caution. 

Crypto is highly speculative. A lot is contingent upon the US regulatory framework mending and improving itself. It is debatable whether US-based cryptocurrencies should move to Singapore or Japan as green pastures regulation-wise. A lot still remains to be done in the regulatory sphere, not to mention the SEC’s stand on all this. We recommend 101Investing for trading ethereum. Read our 101Investing Review.

The long term investment outlook is all good. However, do not expect the market to reward you overnight. Patience will pay off – in 2025. 

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