Ethereum Grows in Acceptance – What Does it Mean for ETH/USD?
Bitcoin was the first cryptocurrency and remains the leader in the crypto sector. However, Ethereum has been growing in acceptance, becoming more popular and widely used. According to basic supply-and-demand models, the acceptance of Ethereum to a greater degree should have an impact on its price. Discover Ethereum’s current growth, the overall situation, and expert predictions.
A Bump in Price After Acceptance on Reddit
To give an idea of how the growing acceptance of Ethereum positively impacts the price of ETH/USD, look at an example from earlier this year. In May, Reddit CTO, Chris Slower, announced that Reddit users could soon use Ethereum to purchase Reddit Gold. Shortly after this announcement, the price of Ethereum jumped to $750, representing a growth of 11 percent.
Keep in mind that there were also other factors at play in the price increase. One of them was a statement by Alexis Ohanian, Reddit Co-Founder, that he felt ETH could reach $15,000 by the end of 2018. This comment related to the decision to accept ETH on Reddit. There were also announcements about the growing adoption of the Ethereum blockchain for ICOs and crucial financial institutions.
Ethereum’s Growth in Acceptance and Use
Reddit’s announcement is not the only sign that Ethereum continues to experience growth and increased acceptance. LocalEthereum, the peer-to-peer exchange and escrow service for buying and selling Ethereum, added 22 new payment methods in May, bringing the total up to 39. As a result, that expanded the ability of users worldwide to buy and use ETH.
The Ethereum Foundation selected 22 recipients to receive $2.84 million USD in total via grants. Those grants will allow developers to enhance Ethereum’s ecosystem, assisting with security, usefulness, and scalability. The Ethereum Foundation also plans to fund more startups in the future.
Many companies accept Ethereum, including brand names like:
- Chicago Gem Shop
- Laptop Power Bank
Out of these, the inclusion of Overstock.com is a critical indication of Ethereum’s growing acceptance as this was the first major brand name to do so. Overstock.com supports other cryptocurrencies, including:
- Bitcoin Cash
In the near future, the list of companies accepting Ethereum as payment will likely grow. There are already multiple companies dedicated to processing ETH payments, allowing businesses of all sizes to accept this currency. They include:
The list of businesses that accept Ethereum is already reasonably-sized and more companies join this trend daily.
Ethereum’s Current Status
Before you look at predictions for Ethereum to understand what experts feel will happen to the price of ETH/USD in the future, you need a better grasp on the current state of ETH.
According to CoinMarketCap, one of the most respected websites for real-time crypto stats, one ETH equals 276.20 USD (as of August 27), which is 0.04116672 BTC. CoinMarketCap ranks Ethereum at number two with a market cap of 28,104,269,011 USD. The circulating supply is 101,586,549 ETH, and the 24-hour volume at the time of writing is 1,264,622,508 USD.
Ethereum Predictions from Its Co-Creator
A lot of predictions for the future of Ethereum’s value in comparison to USD are easy to find online. The general consensus among experts is that it will increase in price, but the specific predicted values vary based on the resource. A good place to start is Smartereum’s report on what Steven Nerayoff, the co-creator of Ethereum, predicts.
According to Nerayoff, the value of Ethereum may triple in 2018. He does not necessarily believe that Ethereum will surpass Bitcoin, but he does expect that Ethereum will experience significant growth during the rest of the year. He has not, however, ruled out the possibility of Ethereum overtaking Bitcoin. Nerayoff explained that the Ethereum ecosystem experienced growth by billions of dollars now, with perhaps ten times as many projects this year compared to last year. Simply put, more and more businesses now recognize the benefits of Ethereum and its utility in terms of executing smart contracts and payment.
Other Ethereum Predictions
The predictions regarding Ethereum from Smartereum follow Nerayoff’s lead. They cite that ETH could reach $2,500 by the end of 2018, $14,000 by the end of 2019, and $31,000 by the end of 2020. Their projection for a dramatic increase in value is due to:
- increasing usage of Ethereum applications;
- increasing usage of smart contracts;
- additional companies moving toward decentralized cloud-based applications.
Other industry experts have similar expectations for Ethereum’s growth, although not all expect such a dramatic change. Wallet Investor has a one-year forecast for ETH/USD of $420.396 and a five-year forecast of $1,254.200. Those figures are much more conservative than those offered by Smartereum, yet they still show a significant increase in value.
CoinSwitch lists a collection of predictions for Ethereum from various experts, showing the extreme variation in expectations:
- deVere Group: $2,500 by the end of 2018;
- Investing Haven: $1,000 possibly by the end of 2018, definitely by 2020;
- Olaf Carlson-Wee: ETH will exceed BTC by the end of 2018;
- Findr: A 112% increase by the end of 2018;
- CoinSwitch: $1,221 by the end of 2018, $3,844.73 by the end of 2023.
While the world of cryptocurrencies is incredibly volatile, experts and investors can still discover some trends. It is clear that more people and businesses accept and use Ethereum on a regular basis, which should lead to an increase in its value. Still, it is always a good idea to try and read the market tendencies on your own, as no one could guarantee the profitability of your investment.