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When the then-19-year-old Vitalik Buterin released the Ethereum whitepaper in 2013, his vision made sense to less than 30 people. A decade later, the once-novel idea has grown into a revolutionary force reshaping the world of finance and technology in unimaginable ways. As the second-largest cryptocurrency by market capitalization, Ethereum is truly in its own league.

When the then-19-year-old Vitalik Buterin released the Ethereum whitepaper in 2013, his vision made sense to less than 30 people. A decade later, the once-novel idea has grown into a revolutionary force reshaping the world of finance and technology in unimaginable ways. As the second-largest cryptocurrency by market capitalization, Ethereum is truly in its own league.

To the unfamiliar, Ethereum is a decentralized blockchain platform that creates and executes smart contracts. This has birthed an entire ecosystem comprising thousands of groundbreaking decentralized applications or dApps, such as DeFi protocols, NFT marketplaces, identity solutions, and gaming platforms, to name a few. Ethereum uses Ether, ETH, as the native token for interactions on the network. ETH is currently the second-largest crypto by market capitalization.

To the unfamiliar, Ethereum is a decentralized blockchain platform that creates and executes smart contracts. This has birthed an entire ecosystem comprising thousands of groundbreaking decentralized applications or dApps, such as DeFi protocols, NFT marketplaces, identity solutions, and gaming platforms, to name a few. Ethereum uses Ether, ETH, as the native token for interactions on the network. ETH is currently the second-largest crypto by market capitalization.

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However, like other cryptocurrencies, the Ethereum price has been on a wild roller coaster over the past few years, and it seems like the worst isnt over yet. According to Yahoo! Finance, a bipartisan bill seeking to regulate DeFi like a bank has been tabled to the US Senate. This bill has a lot of implications for Ethereum because much of what happens on the platform has to do with DeFi, building decentralized exchanges, and creating lending and borrowing protocols. If it passes, it will automatically affect the entire ecosystem, limiting what users can and cant do on the Ethereum network in the future.

Some positive developments on the network have also impacted the Ethereum price in recent months, such as the Merge. On 22 September 2022, Buterin informed the world via Twitter that Ethereum had finalized the switch from proof of work to proof of stake. This was made possible by joining Ethereum with the proof of stake blockchain called the Beacon chain in what is now known as the Merge. This merger made the network more secure, faster, and sustainable. Upon completion of the Merge, Ethereum reduced its energy consumption by 99.95%, making it a green blockchain and attracting many climate-conscious investors.

Beyond the sustainability aspect, the greatest achievement of the Merge was what it did for Ethereums issuance. Unlike other cryptocurrencies, Ethereum doesnt have a cap on its supply. This means the number of coins in circulation can double at any time, leading to more demand and lower prices. Before the Merge, there were about 13,000 ETH minted every day. Today that has dropped to only 1,600 per day, a 90% drop in pre-Merge issuance. Per Ethereums roadmap, the platform has 5 more developments in the pipeline aimed at lowering the gas fees, improving scalability, reducing decentralization risks, and reducing computational costs of running nodes.

With the past developments and future plans, Ethereum will most likely hold strong for the foreseeable future. Looking back, Ethereum reached its all-time high price of $4,847 on 10th November 2021, when the circulating supply was about 118 million, and its market cap was $576 billion. By 25th July 2023, the Ethereum price stood at US$1,853.44, with a circulating supply of 120.23 million and a market cap of $222.83B.

In terms of tokenomics, the Ethereum supply has only gone up slightly since its last bull run, and should the trend hold, there will be about 118 million ETH in circulation by November 2025. If it maintains its dominance in the market during the peak of the last bull run, Ethereum will hold 22.4% of all the money in crypto. To predict the price, we just have to divide Ethereums market cap by the circulating supply. So, if the market cap of all crypto rises to 10 trillion, Ethereum would hold $2.24 trillion, and one ETH would cost $18,983. However, other factors can affect the markets volatility and Ethereums dominance in the industry, so investors should be ready for anything.

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