Ethereum to $20,000? Factors Behind The Bold Call

Ethereum could reach $20,000 by 2025 according to a Finder’s panel.

Ethereum has since been gaining momentum, starting out at $1,000 at the beginning of the year and reaching an all time high of $4,196.63, according to Coin Metrics. Before losing steam and dropping down to its current price at $2,400. Clocking an average growth rate of 197.4% in 2021.

This massive run has given the coin a lot of popularity. Ethereum currently ranks as the second most popular coin behind Bitcoin.

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With so much support pouring out for the coin, investors in the coin have been very bullish on it. Lots of analysts believe that Ethereum is poised to overtake Bitcoin as the most popular coin in the market. So much technological advancements are being carried out on the blockchain that its use cases seem to be endless.

Impact Of DeFi and NFTs

The growing popularity of decentralized finance (DeFi) and NFTs have helped to push the popularity of Ethereum. Giving it more use cases that benefits the investors in the coin.

About 70 percent of the panel agreed that with DeFi and NFTs, Ethereum now has more use cases than Bitcoin.

John Hawkins, senior lecturer at the University of Canberra, went against the grain to say more use cases would not necessarily benefit the coin. He expanded on this by saying that Ethereum will most likely get dragged down with Bitcoin. Despite having more use cases.

Ethereum price chart

Ethereum price sits below $2,5000 | Source: ETHUSD on TradingView.com

With staking and yield farming with DeFi, investors have found another way to put their investments to work, while at the same time benefiting the network.

With Ethereum 2.0 on the horizon, developers are looking to replace the existing Ethereum blockchain with a new one. This will help to solve the current bottlenecks of the network. It will also increase the number of transactions being made on the network. Hopefully helping to reduce the exorbitant fees being charged for transactions when network traffic is high.

Ethereum Predictions By Finder’s Panelists

The Finder’s panel consisted of a number of prominent panelists. Present were Dr. Iwa Salami from the University of East London. COO of BitBull Capital, Sarah Bergstrand. Vishal Shah, CEO of Alpha5. Head Economist at ConsenSys, Lex Sokolin. Amongst others.

A good number of the panel seemed to agree that while the coin might not have much further to run this year, the next four years is going to see a massive run.

CEO Vishal Shah was on the more conservative side. He predicted that the coin would not be worth much more than it is now. Putting it at just $4,000 by 2025. Shah believes that Ethereum will continue to perform. But that the unlimited supply of the coin is a demerit to it. He also added that Ethereum was in a race with other protocols for the its usability profile. And that there are other faster and cheaper chains that will rival the coin in the future.

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Others did not see this as a befitting forecast. Citing the upgrades being done on the network, Sarah Bergstrand, Chief Operations Officer at BitBull, gave a price prediction of $100,000 per ETH by the end of 2025. A staggering forecast.

She believes that mass adoption of Bitcoin will be followed by mass adoption of Ethereum. Also that the upgrades being carried out on the network will help to push the price higher.

Dr. Paul Ennis put his prediction at $10,000 by the end of 2025. Stating that Ethereum is currently undervalued.

Dr. Salami went on to give the coin a $20,000 forecast by 2025.

This brought the average of the panel’s predictions to $19,842 per ETH by 2025.

Featured image from Blockchain News, chart from TradingView.com

How Mark Cuban Got Rugged In Iron Finance’s Crash, Post Mortem Revealed

Mark Cuban has been publicly bullish on Ethereum and DeFi. The billionaire has gone all-in on this sector. He believes dApps have great potential to build a new financial system. However, some protocols carry higher risk, sometimes that leads to a higher reward or a bigger loss, as Cuban himself just discovered.

The billionaire got into a protocol called Iron Finance (TITAN), an algorithmic stablecoin project. After a couple of days live, the protocol’s native token TITAN crashed to 0, as the team reported via their Twitter handle.

Cuban wrote about TITAN in a blog post titled “The Brilliance of Yield Farming, Liquidity Providing, and Valuing Crypto Projects”, published on June 13, 2021. There in he claims to be the only liquidity provider for the trading pair DAI/TITAN on QuickSwap with an initial $75,000 investment.

Data from DappRadar indicates that Iron Finance has lost more than 60% of its users in the past week alone and, at the time of writing, the protocol records 0 transactions.

Mark Cuban IRON TITAN
Source: Dapp Radar

Mark Cuban decided to participate by becoming a TITAN liquidity provider, but as he admitted in an interview with Bloomberg, he failed to see the shortcomings of the project:

In any new industry, there are risk I take on with goal of not just trying to make money but also to learn. Even thought I got rugged on this, it’s really on me for being lazy. The thing about defi plays like this is that it’s all about revenue and math and I was too lazy to do the math to determine what the key metrics were.

Mark Cuban didn’t reveal the exact amount of his loss. However, since the incident, he has called for more regulations. The billionaire believes regulators should define what is a stablecoin and what level of collateralization it’s acceptable for these types of digital assets. He added:

(…) should the math of the risk have to be clearly defined for all users and approved before release? Probably given stable coins most likely need to get to hundreds of millions or more in value in order to be useful, they should have to register.

What Exactly Happen With Mark Cuban And TITAN?

The team behind Iron Finance has published a postmortem report on TITAN’s crashed. As the report claims, the chain of events that led to the crash begun at 10 am UTC on June 16th, 2021. At this moment, the team recorded activity from whales that started removing liquidity from the IRON/USDC trading pair.

The Whales later sold their TITAN holding for IRON and eventually sold them for USDC. This process caused IRON’s price, the stablecoin, to off-peg. As a consequence, TITAN’s price lost 50% of its value in less than 2 hours.

This process took place during the entire day. Eventually, users panicked, and the protocol began to operate with a negative feedback loop.

A classic definition of an irrational and panicked event also known as a bank run. At the time of writing this, the TITAN supply is 27,805 billion. The team claimed the following:

At some points, the price of TITAN became so low, close to 0 actually, which caused the redeem contract to revert the redeem transactions. We already queued the fix for this, so people can redeem again at 5pm UTC.

Despite the event, the team will work on new products (IronBank for lending and IronSwap for a pegged assets-focused swap solution). In addition, they disagree with Mark Cuban and don’t consider TITAN’s crash as a rug pull. A team member said:

There was no rug pull or exploits. What happened is just the worst thing that could possibly happen considering their tokenomics.

At the time of writing, ETH trades at $2,389 with minor losses in the daily chart.

Mark Cuban IRON TITAN
ETH with small losses in the daily chart. Source: ETHUSD Tradingview