Despite spending a slow year, the crypto market has picked up pace again. The industry is witnessing traders again investing in digital assets.
At the same time, the interest in NFTs and DeFi has surged in the past several months. As the leading smart contract platform, Ethereum is spearheading this growth due to its innovative apps.
The Government of Switzerland became one of the pioneers in adopting blockchain with Ethereum. The nation has already launched virtual IDs based on ETH in Zug.
Similarly, the National Energy Commission of Chile has adopted Ethereum to track its finances and data to facilitate accountability.
Estonia also followed the lead by launching an Ethereum-based E-Resident program. The virtual program witnessed citizens across the world register businesses in Estonia by becoming digital citizens.
The network has been popular among businesses and financial institutions as well. With the market picking pace again, Ethereum is expected to lead the crypto domain worldwide. The brewing demand for Ethereum-based apps is an indicator of the same.
As the second-most-popular crypto, Ethereum is among the assets regulatory frameworks keenly follow. With authorities like the SEC trying to formulate new regulatory guidelines, there will be a great focus on Ethereum to define industry norms.
Similarly, the blockchain network must also ensure its scalability concerns are eliminated. Ethereum has been addressing the issue since its inception, making significant progress in recent months.
The network has shifted to the PoS (Proof-of-Stake) model. The step has elevated scalability, decreased transaction time, and reduced the energy footprint. The mere announcement of these updates helped Ethereum get back on track a while ago.
Now that the market is rejuvenating, Ethereum is set to bring more updates to address its looming concerns. The more upgrades the network gets, its market prospects will improve.
According to a report, the influence of macroeconomic factors plays a crucial role in shaping Ethereum’s standing in the market. However, that is not all the network has to look out for. For instance, the ongoing macroeconomic factors massively affect Ethereum’s market stand. By staying informed, you can gain a more comprehensive understanding of how various macroeconomic influences shape Ethereum’s standing in the market.
These factors define the market sentiment surrounding Ethereum. That is why traders should look at the Ethereum forecast. Besides that, Ethereum’s future hinges on its core use cases too. The network must exude the sentiment that ETH holders can use the token for purposes other than trading.
Given Ethereum reliability, the network should be able to maintain its average transaction volume. The number of active wallets on the platform will also decide its market forecast. Ethereum has to consider its transaction volume. The more users Ethereum onboards, the better its prospects will be.
It will help the network in tackling the effect of macroeconomic factors. Given the current state of the global economy, the growing inflation rates in the US have rendered several nations powerless.
If the market stays uncertain, investors will turn to stable assets, such as gold, land, and even stablecoins, instead of crypto. Such a scenario can spell significant troubles for Ethereum due to crypto’s tendency to fluctuate under uncertain economic conditions.