Crypto Currency

Many Experts Believe Ethereum Could Hit $5,300 Based on Buterin’s 2024 Plan

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Following a solid 2023 performance, Ethereum is above the psychological level of $2000. As of January 4, 2024, Ethereum is worth $2,218.49, with a current market cap of $ 266.63 billion, as Binance data shows. Price developments on Ethereum are hard, if not impossible, to predict, yet can’t be envisioned without the world of DeFi, which challenges the centralized financial system by enabling individuals to carry out peer-to-peer transactions. As opposed to Bitcoin and Ripple, Ethereum isn’t a cryptocurrency but a distributed computing platform that supports the creation of smart contracts and dApps, with Ether being the transactional token that facilitates operations on the network. 

According to cryptocurrency analysts, Ethereum could reach $5,300, largely driven by liquidity indicators and upcoming enhancements in the blockchain. Vitalik Buterin, the co-creator of Ethereum, has devised a plan for 2024 with a focus on six elements: the Merge, Surge, Scourge, Verge, Purge, and Splurge. Indeed, the SEC will continue its enforcement actions this year, yet the experts strongly believe that the implementation of indispensable regulations will pave the way for long-term success and profitability, therefore unlocking the money flow into the cryptocurrency market. Even if Bitcoin reigns supreme over Ethereum, Ethereum is the king of altcoins.

The Stage Is Set for Ethereum, The World’s Second-Largest Cryptocurrency 

Ethereum is the second most popular digital token after Bitcoin, not to mention the focal point of interest in the cryptocurrency market due to its wide range of functions. The core features of the Ethereum blockchain include but aren’t limited to decentralization, transparency, immutability, and automation, which can be applied to a multitude of industries, creating various use cases. According to Raoul Pal, the co-founder and CEO of Real Vision, a financial television for smart investors, Ethereum’s price trajectory is set for an exceptional rise. More exactly, it will skyrocket far beyond $5,000 in 2024 based on Buterin’s plans and market trends. 

No, the prediction isn’t set in stone, but the Ethereum market has a bullish trend, so the cryptocurrency could reach all-time highs in the first half of the new year, but it’s too early to discuss the possibility of Ethereum surpassing Bitcoin. As pointed out by Pal, the new roadmap for the network to follow in the upcoming years provides a blueprint for its future. Vitalik Buterin encourages Layer 2 scaling, wallet security, and privacy, all in a coordinated manner. The aim is to address Proof of Stake weaknesses, enhancing transaction speeds and, most importantly, overall security.  

According To Buterin, Technical Transitions Must Be Addressed Simultaneously 

It will be necessary for Ethereum to adopt three transitions to take over the throne – scaling through Layer 2, transitioning to smart contract wallets, and enhancing privacy – which must be achieved at the same time to support the development of the Web3 ecosystem. The aforementioned transitions aren’t unique to the blockchain ecosystem, or Ethereum for that matter, but they’re critical when it comes to solving interoperability issues. Not only are the three transitions vital but also challenging on account of the intense coordination involved to adequately solve them. All the axes allow Ethereum to evolve into a blockchain that blends low transaction costs, enhanced wallets providing better security, and reinforced privacy protection. 

At times, it’s necessary to reimagine the way we interact with Ethereum because changes in the blockchain are irreversible. Vitalik Buterin wants to bring back the idea of cypherpunk, which involves the use of strong cryptography and privacy-enhancing technologies for social and political change. Ethereum was originally conceived as a public decentralized hard drive that could take advantage of peer-to-peer messaging and decentralized file storage. Getting back on topic, zero-knowledge proofs, rollups, and account abstraction will most surely become mainstream, supporting certain values associated with the cypherpunk movement. 

One Of the Key Updates Is the Implementation of Single Slot Finality 

One of the key points of the strategic plan that defines the outcome for Ethereum includes Single Slot Finality (SSF), which aims to reinforce the irreversibility of the blocks on the network. It’s no secret that it takes about 15 minutes or so for an Ethereum block to finalize; validators must sign off on the block to permanently add it to the blockchain. The Proof of Stake consensus mechanism can become more efficient owing to the implementation of SSF, the easiest way of solving the design’s current weaknesses. Rather than waiting one-quarter of an hour, blocks could be processed and finalized in the same slot.  

Ethereum users don’t want to wait 15 minutes for finality – it’s too long. Additionally, apps and exchanges seeking high transaction throughput must wait a lot to ensure their transactions are permanent. A delay between the block’s proposal and finalization opens the way for short reorgs that a malicious actor could leverage to censor certain blocks or even extract maximal extractable value (MEV). SSF could be the missing piece in Ethereum’s usability puzzle. Other blockchains and consensus algorithms enable instant finality yet don’t do a great job when it comes to security or decentralization. More efficient processing will allow finality to be determined in a single slot. 

Final Remarks 

All in all, Ethereum is a standout candidate for price gains in 2024, and this projection is anchored in a multitude of factors. It’s the second-largest cryptocurrency in the market, but Ethereum’s dominance in transaction activity and narratives, whether NFTs or DeFi, guarantees its authority in the space. Buterin’s roadmap focuses on the challenges of economic centralization in Proof of Stake, and even if not all developments are straightforward, the experts are dedicated to improving much-needed functions, which emphasizes their pledge to the Ethereum project’s long-term viability. Vitalik Buterin refused to provide a timeline for the modifications to the ecosystem. 

Ethereum could turn the screw on $5,300 and reach an all-time high in 2024 following the enhancements on the blockchain. Even if the new year started positively for Bitcoin, the momentum might not hold strong throughout the year. An investment in Ethereum today could turn a profit if the prediction becomes accurate. 

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