Managing Partner Fundstrat Global Advisors and one of the most prominent crypto analysts Thomas Lee has had his say on the immediate future of Ethereum, discussing its problems while also sharing his prediction. He believes that things may be looking up for Ethereum now, after having suffered a severe dip in market all year. Lee admitted to the problems it faces but believes that the second most popular cryptocurrency will bounce back due to its strong and dedicated community.
He said while talking to BlockPublisher:
There are [also] a lot of competitors and ETH has roadmap issues. But I have confidence in the community.
Ethereum has lost half of its value this year as all digital assets have faced a retreating time over the past few months. But Thomas Lee seems adamant that it is time for a rebound. He said:
Ethereum is about to stage a trend reversal and rally strongly.
Ethereum currently sits at $224, which Lee expects to reach $1,900 by the end of the year. He also has a $25,000 price target for Bitcoin, which is currently worth about a quarter of that.
Ethereum saw its price rise in 2017 through a number of ICOs that brought a new method of crowd funding to the fray. These ICOs had ERC tokens at auction which were sold for ETH. Most ICOs have held onto that ETH since then and continue to do so and each and every ICO that continues to hold large sums of ETH represents a potential for further price capitulation.
However, the edge ether has over other digital assets is the ability to use smart contracts. It also permits developers to build decentralized apps on top of its blockchain technology. This edge is interestingly taken out to an extent due to the persistent scalability issues that have risen on the Ethereum blockchain. Its limited transaction capacity has become a derailed aspect for many dApps and many believe that it is running on limited capacity. Such sentiments were shared by Afri Schoedon of Parity Technologies, who asked users to stop putting dApps on the Ethereum blockchain due to its limited capacity. These comments also enraged co-founder Vitalik Buterin who believes that everyone should be looking for layer-2 solutions.