Expectations Surrounding Ethereum and Its Potential in 2024

The Ethereum blockchain is the second largest in terms of market capitalization, and 2024 appears to be the most significant year in its history.

Investors often see ETH as much more than a digital token because of its high intrinsic value and unique use cases that make it popular among creators of decentralized projects.

With even more updates and developments scheduled to take place in 2024, ETH is among the best crypto to hold in 2024. 

The Ethereum Ecosystem 

Speed, security, interoperability, and stability are key features of the Ethereum ecosystem that attract developers and projects. Since going live in 2015, the Ethereum blockchain has enhanced the blockchain and related services, especially for users who trade crypto and build products on the blockchain. Key developments in the ecosystem ensure that Ethereum maintains its relevance in the crypto industry, maintains scalability, and improves interaction between nodes on the network. 

From decentralized applications (DApps) to games and other ideas, developers are increasingly focusing on Ethereum for various purposes. These real-world applications of Ethereum and Ethereum-based tokens are key factors influencing the market value of ETH. There are essential expectations surrounding the potential of ETH to hit new price levels in 2024. 

Developments in the Ethereum Ecosystem 

The top developments in the Ethereum blockchain address critical issues such as security, power efficiency, and speed. Before 2023, the network had congestion challenges, leading to high gas and network fees. To address these, the Ethereum team announced several vital developments.

Ethereum Upgrade (Ethereum 2.0) 

The Ethereum 2.0 upgrade, popularly called “The Merge,” ended in September 2022,  transitioning Ethereum from a proof-of-work to a proof-of-stake mining protocol. The Merge effectively reduced Ethereum’s power consumption by 99%, making it one of the most energy-efficient blockchains in the industry. This vital network upgrade improved the security and stability of Ethereum, ensuring developers can build and deploy scalable products. 

The Merge also improved crypto trading on the Ethereum blockchain and associated tokens by increasing speed and reducing trading fees. Regarding its value, ETH appreciated shortly after the news of The Merge’s completion.

But ETH gained over 35% of its value despite remaining unchanged year-on-year. Ethereum’s value is also expected to increase significantly this year since the Merge has reduced Ether supply by 0.2% via burning, and this number will increase further in the coming months with rising network usage.

The Shanghai Upgrade also went live in 2023, allowing the stakers on Ethereum pools to withdraw staked tokens and enhance network stability. There are upcoming upgrades for the Ethereum network.

These include the Dencun Upgrade, slated for Q1 2024, which will bring scalability and efficiency to the network through “proto-danksharding” 5-EIPs (Ethereum Improvement Proposal), and is expected further to reduce the gas fees on the Ethereum network. 

Chain Development Kits (CDKs) 

Ethereum enables developers to build layer 2 blockchains and solutions using the zero-knowledge proof (ZKP)-powered chain development kits (CDKs). CDKs, first published in 2023, are open-source development frameworks that bring scalability, interoperability, and customization to layer 2 blockchains. They allow developers to explore Ethereum’s rich features to develop various products within the ecosystem.  

The new update, Ethereum Improvement Proposal 4844, is slated for this year. It intends to make the whole ecosystem of layer 2 (L2s) blockchains based on Ethereum up to ten times cheaper.  

This will be the cycle's turning point, propelling Ethereum and layer 2s into their breakout year. 

There has already been an increase in the number of tokens deployed on Ethereum and cross-chain operations with other blockchains like Polygon. This is obvious from the increase in on-chain activities, total value locked (TVL), and other growth indices on the Ethereum blockchain. 

Predictions for ETH Price in 2024

Ethereum currently leads the DeFi space with 56% of the TVL in DeFi. This is important to price predictions for 2024. There are varying expectations for ETH’s price, from $3,500 by May 2024 and $5,000 (ATH price) by December 2024 to $10,000 by 2030. A spot ETF approval for Ethereum may provide enough impetus for ETH to break the $3,500 mark.

Crypto traders are also taking bullish positions on ETH in readiness for the much-talked-about bullish season. Bitcoin (BTC) is rallying the crypto market, having moved from below $40,000 to $51,000. 

With crypto bulls stacking up millions worth of ETH recently (the top 150 self-custody wallets hold 56.25 million ETH), the predictions for ETH may seem modest but are significantly possible when adoption increases. 

Will Ethereum Fulfill Its Potentials in 2024 and Beyond? 

The increase in DeFi applications, web3 gaming projects, and potential enterprise adoption of Ethereum are important factors pointing to Ethereum’s potential in 2024.

With an increased focus on developer tools, resources, and experiences, Ethereum attracts top talents and accelerates the discovery and development of new projects within the ecosystem. It is safe to say Ethereum has the proper support to fulfill its potential and crush new price levels in 2024.

There are challenges, such as regulatory compliance and technical issues, but the pointers are there that Ethereum could play more critical roles in the crypto industry.