Ethereum price prediction for 2024 has become a hot topic as experts believe ETH may soon surpass $5,000. Because the price of Ethereum is now fluctuating between $3,400 and $3,800 in 2024, educated persons and experts have predicted that the cryptocurrency may soon cross the barrier of $5,000. Several actors support the optimistic forecast, including deflationary tokenomics, institutional inflows, and increased adoption of Ethereum applications.
In 2024, the Ethereum network’s activity level reached an all-time high. In 2023, there were only 5 million transactions daily, but now there are an average of 6.5 to 7.5 million. Similarly, increased interactions between decentralized applications (dApps) have led to increased transaction fees and an accelerated burn of Ethereum tokens through its fee-burning mechanism. Consequently, this has led to deflationary pressure, as the rate of ETH burns has surpassed the rate of new issuance, thereby restricting supply and potentially driving up prices.
Ethereum Gains Steam
The price of Ethereum has been gradually rebounding over the last several days despite the disappointing start to the week. The cryptocurrency’s upward momentum suggests that the price of Bitcoin will soon surpass the $4,000 level. Dealers seem to be already shooting for the record $5,000 level, even though many investors have set the $4,000 mark. A renowned blockchain company has predicted that this price figure will increase shortly. Ethereum price prediction indicates a potential rise beyond $5,000, driven by increased dApp adoption and transaction volumes. Analysts suggest Ethereum’s deflationary dynamics may accelerate this growth.
ETH’s Bullish Trajectory
Prominent on-chain analytics platform CryptoQuant examined the probable sources of an Ethereum price rise in its most recent weekly report. The bloc chain company asserts that supply and demand, along with network dynamics, could potentially push the price of Ethereum beyond $5,000. Firstly, CryptoQuant noted the recent capital inflows into spot ETH ETFs, indicating the restored investor confidence and growing demand for Ethereum. From a low of 2.716 million ETH on Wednesday to a record high of 3.41 million ETH on Thursday, the holdings of the US-based Ethereum ETFs have grown substantially.
The increasing burn rate has also caused a slowdown in the rate of increase in the ETH supply during the last few months. According to statistics from CryptoQuant, the number of Ethereum tokens burnt via fees has increased since September, with a spike from 80 ETH on August 30 to 2,700 ETH as of this writing. When asked about network dynamics as a possible driver, CryptoQuant noted that dApp usage, total daily transactions, and contract calls all showed continuous growth in 2024.
Increased usage of decentralized applications (dApps) could potentially lead to deflationary pressure on the total Ethereum supply, resulting in increased ETH burn-through transaction fees. If current trends in demand and supply hold, valuation measures suggest that Ethereum’s price could be ready to surge beyond $5,000. The last bull run’s peak, the realized price upper band for ETH, was at $5,200; it is now at $5,200.
Also Read: Pudgy Penguins Floor Price Hits $106K Amid NFT Boom
In Conclusion
Ethereum (ETH), the second-largest cryptocurrency by market value, is gaining investor attention in 2024. The cryptocurrency’s price is $3,400–$3,800, but experts predict it will reach $5,000 due to various factors. Example: Ethereum’s deflationary tokenomics, institutional inflows, and dApp adoption. Daily EtEthereumm transactions reached a record 6.5–7.5 million in 2024, up from 5 million in 2023. Rising DPP interactions have boosted transaction costs and ETH burn rates, reducing supply and depressing prices. This could potentially lead to an increase in price when the supply decreases.
As Ethereum’s price rises above $4,000, traders chase the historic $5,000 milestone. CryptoQu’s on-chain data reveals a surge in Ethereum ETF capital inflows and a rise in ETH transaction fees, resulting in a decrease in supply and an increase in demand. Ethereum is rising due to dApp usage and transaction volume. According to CryptoQuant, Ethereum might hit $5,000, with the last bull run’s peak reaching $5,200.
[sp_easyaccordion id=”276″]
