The CEO of a crypto trading platform has predicted that Ethereum, the world’s second-largest cryptocurrency, will hit prices as high as $40,000. Bill Barhydt, the CEO of Abra trading platform, recently said in an interview with CNBC that due to the various use cases of Ethereum blockchain and the Ether cryptocurrency, he remains bullish on the price of the digital asset.
“Ethereum’s network effect is based on this idea that it could become the world’s computers. It’s being used for stablecoins, NFTs (non-fungible tokens), defi (decentralised finance) … and gaming now,” said Barhydt.
The token’s price currently stands at $2,577, a far cry from its all-time high of $4,891.
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Barhydt added that he sees a potential upside of up to $40,000 for ETH, a price higher than the current price of Bitcoin ($38,757 to 1 BTC).
“I think, you are talking potentially $30,000-$40,000 Ethereum,” Barhydt said.
Barhydt suggested that the gas and transaction being high may be current obstacles in reaching the bullish market.
“If the gas fees and the transaction fees come down, which is the promise of the proof-of-stake, look out, because now all of the impediments of those network effects are taken out of the way,” Barhydt said.
The upcoming update that would change Ethereum from being a proof-of-work system to a proof-of-stake system may result in a temporary sell-off in the market, he warned.
“We may have a bit of a sell-the-news effect after the initial rush to stake happens with the upgrade in June or July — whenever it happens, the upgrade to proof-of-stake — so you may see kind of sell-the-news pullback,” Barhydt explained.
Ethereum, along with other cryptocurrencies is currently experiencing a slump due to the global macroeconomic conditions – Russia’s invasion of Ukraine and the hawkish outlook from central banks across the globe. ETH is currently down by 8.91 percent over the previous month.