Ethereum (ETH) is a well-known Crypto that has gained significant attention as the second-largest blockchain in the world. While many investors consider Ethereum one of the first cryptocurrencies to invest in, it has experienced challenges like many other crypto projects during the long “crypto winter.”

Although, after the Shanghai Upgrade, Ethereum became a leading blockchain platform. With the series of upgrades to improve the blockchain’s performance, the scalability and security of Ethereum’s blockchain have improved drastically. The main goal of the Shanghai upgrade was to make the Ethereum network more efficient and user-friendly.

With all these shifts from PoW to PoS consensus mechanisms and upgrades happening, Ethereum has garnered a lot of attention from the Crypto community. In this blog, let’s see if it is worth investing in Ethereum in 2023.

As we already know, Ethereum is not just a Crypto; it’s a complete package that offers various services to its users and investors. So, before we move forward, let’s have a generalized look at why Ethereum can be a good investment.

5 reasons why Ethereum is a good investment

#1 Decentralized Finance (DeFi) Applications:

DeFi is one of the most promising applications of blockchain technology. Ethereum has turned out as the leading platform for DeFi, with over $100 billion in Total Value Locked (TVL) in DeFi protocols built on its blockchain. These DeFi applications enable users to lend, borrow, trade, and earn interest on their Crypto holdings, all without intermediaries like banks. As DeFi continues to grow, demand for ETH to use in these applications will likely increase, leading to potential price appreciation.

#2 Future Upgrades:

Ethereum has a strong roadmap for future upgrades that aim to address its current blockchain’s scalability and security issues. The most significant upgrade was Ethereum 2.0. Ethereum switched from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism, ultimately reducing energy consumption and improving transaction speed. However, there are more upgrades that have to be done. All these upgrades are expected to increase the utility and adoption of Ethereum and increase its prices.

#3 Non-Fungible Tokens (NFTs):

Ethereum’s blockchain has become the go-to platform for Non-Fungible Tokens (NFTs), which are unique digital assets that can represent anything from art to music to video game items. The popularity of NFTs has exploded in recent years, with some selling for millions of dollars. As more creators and collectors use Ethereum’s blockchain to create and trade NFTs, demand for Ethereum is likely to increase. This will gradually impact the prices of Ethereum in the coming future.

#4 Institutional Adoption:

Ethereum has been gaining traction among institutional investors and corporations. Several large financial institutions, such as JPMorgan and Goldman Sachs, have launched or are planning to launch Ethereum-based investment products. Additionally, companies like Microsoft, Intel, and BP have joined the Enterprise Ethereum Alliance, a consortium of companies working to develop and promote Ethereum’s blockchain technology. As a result, institutional adoption on a broad scale will drive demand for ETH, causing the price to soar.

#5 Strong Developer Community:

Ethereum has a high-spirited and active developer community that is constantly building new applications and protocols on its blockchain. This community has created thousands of dApps and smart contracts that are being used in various industries, from finance to gaming to supply chain management. The strong developer community is a testament to the potential of Ethereum’s blockchain technology and its potential for future growth and innovation.

All these points validate why Ethereum is worth investing in 2023. But, according to Crypto experts and analysts, Ethereum can cross the mark of $2k in 2023. So let’s see why they have predicted this for Ethereum.

5 reasons why Ethereum can cross the $2k mark in 2023

#1 Continued rising inflation and potential recession:

With inflation on the rise and the potential for a recession looming, investors are turning away from the struggling stock market and looking for alternative investment options. Cryptos are becoming increasingly popular as a way to diversify portfolios. Ethereum, as one of the top crypto projects on the market, is expected to attract significant attention from investors seeking alternative investment opportunities.

#2 The Merge:

Ethereum’s successful Merge in the fall of 2022 demonstrated the blockchain’s ability to adapt and move ahead. With the Merge, the blockchain is expected to become more efficient and cost-effective. These improvements will make it more attractive to investors and may drive the price of ETH higher in the future.

#3 Projected growth:

Ethereum is currently the second-largest blockchain in the world, and its growth shows no signs of slowing down. With more and more projects being based on the Ethereum blockchain each day, there is a positive outlook for its future growth. This growth provides further credibility to the platform and may attract more investors to ETH.

#4 Crypto comeback:

The crypto winter appears to be coming to an end, and many projects are beginning to show positive results in 2023. This trend is expected to attract more investors to the Crypto market, and ETH, being one of the most well-known Crypto projects, is likely to benefit from this renewed interest.

#5 Diversification:

One of the main features of Ethereum is its ability to host other crypto projects, including not just coins but also NFT communities and dApp developers. As these assets become increasingly popular, it is expected that ETH will also grow in popularity. This diversification is a significant draw for investors, and it provides further potential for growth in the future.

Conclusion

Looking at all the points mentioned above, it is clear that Ethereum is worth investing in 2023 and has the potential to reach the $2k mark soon, with all the upgrades happening. 

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Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.