The blockchain developer and co-creator of Ethereum told CNBC that companies from various sectors are starting to understand the potential of Ethereum’s blockchain. According to him, Ethereum might triple in value this year due to the interest in its ability to process fast low-cost transactions.
Besides that, Nerayoff predicted that Ethereum could be pushed ahead of Bitcoin, by the projects which developed their technologies on the Eth blockchain.
“What you’re seeing with ethereum is exponential increase in the number of projects — there are billions of dollars being poured into the ecosystem right now — maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year,” said Nerayoff.
Furthermore, he said that not only fin-tech companies are interested in the blockchain. With the help of Ethereum, companies from gaming to energy industries, and even governments have started to use develop solutions and applications.
Ethereum has the advantage of having a smart contract system besides being a peer-to-peer currency. With the use of the smart-contracts, the companies can send each other decentralized contracts. But also Ethereum is known to have a great scalability (fast transactions) and low fee prices.
“People are actually using it for currency as well. Lower transactional costs are increasing usage of the entire network, and that’s increasing the network effects of it. There are more users, more projects being built on there and more programmers,” added Nerayoff.
At this moment, Ethereum has a market cap of $118 billion and is the second largest cryptocurrency after Bitcoin. After Coinbase announced that it has no intention to list Ripple on GDAX exchange, Ethereum regained its second position. After the announcement Ripple dropped by 30%.
Last Friday, Ethereum co-founder and Cardano (ADA) developer, Charles Hoskinson, said on CNBC that the crypto market might crash, but only to strengthen again. He said that the correction because some altcoins are designed on unrealistic targets and without substance.
“My personal opinion is that we’re going to see a consolidation after a crash,” said Hoskinson for CNBC