As the cryptocurrency market continues to evolve, one question on many investors’ minds is whether or not they should buy Ethereum in 2023. While no one can predict the future with certainty, it’s worth taking a closer look at the potential for growth in the Ethereum market.
With its promising technology and growing adoption, Ethereum has the potential to be a strong investment opportunity in the coming year.
However, as with any investment, it’s important to conduct thorough research and consider your own risk tolerance before making a decision.
In this article, we will examine the current state of the Ethereum market and explore the potential for growth in 2023 to help you make an informed decision about whether or not to invest.
Let’s first have a look at the use cases of Ethereum in order to understand what Ethereum truly does.
Use Cases of Ethereum
Following are the use cases of Ethereum:
Smart contract
On Ethereum, smart contract execution is decentralized. The profiles of the entities on the network are protected, in addition to the complete trustworthiness and security of the asset and currency transfers. The accounts are modified accordingly after the trade is finished, building trust between both parties.
Decentralized finance
The Defi function of Ethereum helped to make it very well known. Payments can be processed via decentralized finance (Defi) without a bank or other financial institution. With over $13 billion in wealth trapped in Ethereum smart contracts, the DeFi ecosystem has developed a vast network of integrated financial instruments and protocols. To increase financial safety and transparency, facilitate an integrated & standardized ecosystem, and free up liquidity, Defi employs fundamental Ethereum ideas.
dAPPs, or decentralized apps
The Ethereum platform is used to power and construct decentralized applications, or dAPPs. They are implemented on the Ethereum network via smart contracts, which store data on the platform’s blockchain.
The payment gateways
The ability to move money internationally without incurring transaction costs makes payments and remittances one of Ethereum’s most interesting applications. Users can keep money in an account that transforms tokens into fiat currency for transactions via payment gateways that are connected with Ethereum or other cryptocurrencies.
Asset tokenization
The market for security tokens is a multi-trillion dollar industry, and Ethereum may be the chosen technology driving this development. Stocks, metals, real estate, and other real-world assets are represented by security tokens, which are blockchain-based. Tokenization enables issuers to conduct transactions and move these assets more quickly. One of the initial compliant systems to tokenize actual assets is being built by blockchain firm PolyMath, for instance.
ICO platforms
Crowdfunding via initial coin offerings (ICOs) is a crucial use case for Ethereum. Numerous businesses have already introduced ICO platforms that enable consumers to design new digital currencies. As a result, an ecosystem is created that offers greater freedom to customers, investors, and innovators.
Health-related applications
Ethereum is expected to revolutionize the healthcare industry by enabling institutions all around the world to securely store, retrieve, and share patient records. This is a significant advance for preventing and controlling future serious outbreaks with the creation of new vaccines.
Managing Digital Identity
In the era of information, identity theft is a significant issue. Apps built on the Ethereum platform provide a novel way to stop fraud and identity theft. The application case includes both businesses and IoT devices in addition to people. Through features like inbuilt encryption, identity management, and decentralized identifiers, Ethereum enables users to establish and keep their digital identities.
Ethereum Upgrades
Let’s talk about upgrades related to Ethereum in recent times and those in store in the future.
Recent Ethereum Upgrade – Merge
The largest blockchain network capable of supporting smart contracts, Ethereum, suffered one of the most significant transformations in the history of any cryptocurrency on September 15, 2022. The second-largest network in the planet by market size, Ethereum, underwent a change known as the Merge that changed its consensus method from proof-of-work to proof-of-stake.
Ethereum Shanghai Upgrade in Future
The Ethereum Shanghai Upgrade is planned to bring a number of significant enhancements and fundamental adjustments to Ethereum’s EVM functionality. The Ethereum Foundation launched a pre-Shanghai testnet before its official release on October 14, 2022. The Ethereum Improvement Proposals (EIPs) that are anticipated to be released in the actual Shanghai Update will be tested and finalized on this testnet, also known as “Shandong.” The Shanghai Upgrade might bring effect in the following features:
- Gas fees: Among the major effects that Ethereum Shanghai Upgrade is anticipated to have is a reduction in gas costs for layer-2 related solutions that run over Ethereum, such as Optimism, Polygon, and similar ones. Using Ethereum is now quicker and less expensive thanks to these L2 solutions, and this improvement might even lower the cost of doing trade over Ethereum blockchain.
- Improvements to smart contract facilities: The Shanghai Upgrade is expected to bring about another significant development in this area. Being the largest blockchain network capable of smart contracts, Ethereum must continue to advance in terms of advancement.
- Retrieval of ETH tokens that have been staked: Prior to Ethereum Merge, everyone interested in being in the modern PoS Ethereum Beacon chain as a verifier would have to stake a particular value of ETH to the smart contract deposit, and that stake was suggested inside along with the contract following the Merge took place. However, with the Shanghai Upgrade, we might experience the release of the lock-in and enable individuals who have staked the ETH tokens to reverse their actions.
Looking at the above use cases, and the future upgrades and roadmap, it should be clear by now, that ETH is not a shitcoin, and is here to stay.
Why I think ETH is a good investment to make in 2023?
I believe that Ethereum is a good investment to make in 2023 for several reasons.
Firstly, Ethereum’s blockchain technology is considered to be more advanced than that of many other cryptocurrencies, with its smart contract capabilities making it a popular choice for decentralized applications and non-fungible tokens (NFTs).
Secondly, Ethereum’s adoption is also growing rapidly. Many companies and institutions are now exploring the use of Ethereum’s blockchain for various purposes, and this is expected to increase in the coming year.
Thirdly, Ethereum’s community is one of the largest and most active in the cryptocurrency space. This strong community is a key driver of innovation and development within the Ethereum ecosystem, and it is expected to continue to drive growth in the future.
Finally, Ethereum is also working on its scalability solutions like Ethereum 2.0 which is expected to be a game changer for the network and the entire crypto space.
Overall, while cryptocurrency investments always come with risk, I believe that Ethereum’s technology, adoption, community and upcoming network upgrades make it a strong investment opportunity in 2023.
As always, it is important to conduct thorough research and consider your own risk tolerance before making any investment decisions.
Should you consider buying Ethereum in 2023?
Yes, you can consider buying Ethereum. The approaching bullrun 2023 is a fantastic time to buy in Ethereum (ETH).
Since its introduction to the market, the value of ETH has increased dramatically, and it is continuing to perform well as more individuals become aware of its growth potential.
The growth of decentralized finance (DeFi) initiatives on the Ethereum blockchain suggests that ETH will remain a desirable commodity for both experienced and novice investors.
