Time flies, and in the blink of an eye, it is the last day of 2024. Tonight is New Year's Eve. Have the brothers thought about how to celebrate the New Year? Dashi Ma first wishes everyone a Happy New Year and a prosperous 2025 with family joy. This year, everyone should know that Bitcoin has taken the most important step by breaking new highs, which has greatly increased people's enthusiasm for Bitcoin. However, Ethereum, after the ETF approval, has indeed disappointed its believers. So, 2024 has passed like this. Let's talk about Ethereum's challenge to reach ten thousand dollars in 2025. Will it achieve a significant breakthrough and lead the altcoin army to the path of an empire?
Let’s start with the positives. Ethereum has been upgrading its technology. It’s like replacing a car’s engine and parts with better ones; the Ethereum 2.0 Spectra upgrade achieves this effect. After the upgrade, the network operates like a highway, allowing transactions to be completed faster without congestion. Staking Ethereum has also become more cost-effective; previously, staking was like having to pay a large deposit, but now costs have decreased, allowing more small investors to participate. Moreover, users have better control over their assets, akin to adding various high-end locks and rules to their wallets.
Additionally, the applications on Ethereum will continue to grow. For example, in finance, the current decentralized finance (DeFi) is like an emerging financial town, with Ethereum as its foundation. With technological advancements, the financial services this town can provide are becoming more sophisticated, allowing faster transactions and more flexible borrowing and repayment rules. People see this place as good and bring their money and projects here, thereby increasing the demand for Ethereum.
In terms of digital artwork and game items, Ethereum is also very powerful with non-fungible tokens (NFTs). Imagine you have a famous digital painting stored on Ethereum, like giving this painting a stamp recognized by the whole world, proving that this painting is unique and that no one can alter this proof. Collectors, upon seeing this, will be willing to spend money to buy it, and transactions will need to use Ethereum, thus raising Ethereum's price.
From a broader perspective, some good things may happen. If Trump comes to power, he seems to be quite friendly towards cryptocurrencies. He might ease the regulations on Ethereum and other cryptocurrencies overseen by the SEC. For instance, making it easier to approve funds that invest in Ethereum, allowing large investment institutions like banks and fund companies to legally invest money into Ethereum, as if giving Ethereum a shot of adrenaline.
Moreover, Ethereum holds a significant share in several important fields. Take stablecoins, for example; they are like stable cash in the digital world, and many stablecoins exist thanks to Ethereum. As the use of digital cash for transactions increases, more Ethereum will be needed to support this, much like needing more paper to print money. In turning real-world assets into digital assets, Ethereum is also very impressive. For instance, converting a house into a digital asset relies on Ethereum, which means that buying and selling digital assets of houses will also require Ethereum, thus increasing demand.
However, Ethereum also has many troubles. Many new blockchain platforms are emerging, like Solana, which has very fast transaction speeds and low fees. It's like Ethereum is an older supermarket where you have to wait in long lines to check out, while Solana is like a new supermarket where checkout is quick and prices are low. Those engaged in high-frequency trading, like frequent buyers and sellers on decentralized exchanges, may move over to Solana. Other platforms like Aptos also have their own systems in security and accommodating more projects, which may attract some companies originally intending to develop games or other projects on Ethereum, leading to a decrease in Ethereum’s funds and users.
Then there’s cross-chain technology, which is like building a bridge between different blockchains. In the past, you could only play on the Ethereum island, but now that there’s a bridge, you can take your assets to other blockchain islands, making it unnecessary for everyone to use Ethereum.
Now let’s talk about the economic situation. If the global economy worsens and enters a recession, it’s like everyone runs out of money and has to tighten their belts. At this time, investors may want to put their money in safer places, like gold or government bonds, and high-risk investments like Ethereum may become less appealing, which will certainly affect the price. Additionally, if central banks in countries like the United States raise interest rates, it’s like the interest offered by banks increases, leading people to deposit their money in banks or buy bonds, which will again siphon funds away from Ethereum, causing prices to drop.
Lastly, there’s the issue of regulation. The U.S. may treat Ethereum more favorably, but other countries might not. Some countries might prohibit banks from engaging in any business related to Ethereum or impose high taxes. It’s like one moment someone gives you candy, and the next moment someone hits you; investors will feel uncertain and may hesitate to invest in Ethereum. Moreover, even if the U.S. currently has a good attitude towards Ethereum, that could change in the future, just like the weather can change unexpectedly, leading to market chaos and adversely affecting Ethereum's price.
Therefore, whether Ethereum can rise to ten thousand dollars in 2025 is really hard to say. Whether a bull market will come depends on how these matters develop in the end; we can only wait and see.