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Can Ethereum really touch a trillion dollars?

Although 2019 will certainly not go down in history for being its best year, Ethereum (ETH) continues to be one of the best performing digital assets of all time, going by a price ICO below the dollar, around 160 dollars, where it is today.

Despite this surprising historical gain, investors in the world's second-largest cryptocurrency by market capitalization believe ETH will rise even higher. And there are not a few analysts who believe that Ethereum can even exceed a market capitalization of a trillion dollars.

To some extent, Ethereum's market cap of $ 9.000 trillion at current price levels would equate to around $ 5.000 per ETH. In other words, it would mean that the cryptocurrency should achieve an increase of over XNUMX%.

Now, in a January edition of the newsletter published by Ethereum investor Ryan Sean Adams, Lucas Campbell of DeFi Rate exposed a scenario in which ETH could have overall reached a maximum 13-digit market capitalization.

The evidence supporting this case was largely related to cheap bandwidth, and in particular the idea that ETH is "a trustless cheap bandwidth that cannot be replaced by any other asset on the network. Ethereum ". In other words, the criptovaluta it is probably the ideal reserve currency for the rest of the decentralized financial ecosystem.

At the moment, DeFi protocols "consume 3% of ETH's total economic bandwidth", or 3% of the total supply in more layman terms, is reported in his study. But with the increased demand for DeFi, with the existence of protocols that require more reserves of Ethereum in order to operate, and with the existence of a multi-billion addressable market for ETH (in cash, financial services and derivatives), yes could see a really substantial growth.

Other analysts also point out that Ethereum's performance will still be linked to that of the best-known international cryptocurrency, Bitcoin. In particular, the trader CryptoWolf recently noted that if you compare the rankings of the early years of Bitcoin and Ethereum since their birth, the latter is strangely following the path of the former, with the two cryptocurrency both of which have seen an incredible return on their investment since their early days.

In short, if Ethereum actually continues to follow the path traced by Bitcoin, by the end of the decade, its price will increase by thousands of percentage points from here, and potentially even more, giving hope to all traders who have bullish positions.

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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