Cryptocurrencies have attracted a lot of attention from traditional investors due to the enormous price increases in recent years. With the increasing interest and understanding regarding cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), many experts recognize the potential behind Bitcoin as a digital store of value and future of payment.
Also, Cardano (ADA) is one of the projects which is a faster alternative to ETH. In this ADA forecast (ger. Cardano Prognose) you can find some insights about the progress on the roadmap and some other fundamentals.
However, with this rapid development, other cryptocurrencies such as Ethereum must also be mentioned. The cryptocurrency is currently in second place according to the market capitalization of all cryptocurrencies.
Moreover, ETH is becoming more and more relevant in the context of a decentralized financial structure. As a result, experts also attribute a high potential to Ethereum, which is explained in more detail in this detailed Ethereum forecast (ger. Ethereum Prognose) based on fundamentals and chart analysis.
Ethereum could be the future of Decentralized Finance
With Ethereum and other cryptocurrencies, it became possible to map smart contracts on the native blockchain. This allows complex functions to be programmed and secured in a decentralized manner on a public blockchain.
This makes it possible, for example, to map the decentralized trading of various cryptocurrencies and other financial products via various smart contracts, which is currently enjoying great popularity. In the meantime, more than USD 4 billion flows daily via decentralized trading platforms. Everything without any middleman or other centralized service providers.
But that is by far not all that is and will be possible with smart contracts on Ethereum. From decentralized loans to patents, all kinds of applications can be programmed on the ETH Blockchain and carried out in a completely decentralized manner.
Due to the security of the Ethereum Blockchain, information cannot be manipulated. This is also the reason why ETH is associated with a kind of “world computer.”
At this point, many investors are also wondering how Ripple with XRP fits into this context. Because smart contracts are soon to become possible on XRP as well.
All the necessary information about this new development can be found in this Ripple forecast (ger. Ripple Prognose).
Bitcoin still the most important cryptocurrency
This sharp increase is not only due to the growing interest in Decentralized Finance (DeFi), but also due to the increase in the price of Bitcoin. The interest of institutional investors is rising in BTC.
If the various Bitcoin price forecasts are to be believed, BTC could crack USD 100,000 before the end of 2021, providing even more liquidity and committed capital to DeFi.
Decentralized Finance is still under the radar, however. Bitcoin is currently getting too much attention. In addition, the various decentralized applications are sometimes complex and make it difficult to onboard newcomers.
So the potential is not only with Bitcoin itself but also with other cryptocurrencies and networks that occupy a different niche and will develop there over the next few years. On the other hand, such applications could also eventually find their way to Bitcoin, making use of the largest and most secure blockchain in the world.
That said, currently, DeFi is playing out almost exclusively on ETH. Ethereum will bring big changes with DeFi and may trigger a revolution in the traditional financial market.
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