Ethereum Could Grow More Than $6,000, Bloomberg Analyst Says

The price of Ethereum has always been a strong cause of controversy among investors. While some may think that the digital asset is overrated, others believe that the cryptocurrency has not yet achieved its potential. One of those is Bloomberg analyst Jimmy Coates, who revealed a very bullish forecast for the digital asset, saying that it will grow more than 100% from its current price.

Ethereum at $6000?

Coates has expressed a very positive outlook for the second-largest cryptocurrency, Ethereum. Like others before him, the Bloomberg analyst sees the utility of the cryptocurrency and its real-world uses as the argument for this extremely high valuation. That’s why Coutts said he’s seeing the price of the digital asset grow to more than $8,300, a 100% increase over where it’s currently trading.

A Bloomberg analyst referred to cryptocurrency as a “unique combination of equity, commodity, and monetary properties,” a school of thought that is not at all rare among investors and Ethereum proponents.

Using a discounted cash flow model created by Bloomberg, the value of ETH tokens is expected to rise to $6,128, more than doubling in price even after the recent rally.

What is driving this?

Besides being one of the most useful cryptocurrencies, Ethereum has also made it on the radar of major investors due to the network upgrades. One of these upgrades is the move to the Ethereum consensus layer which will finally move the network from using the Proof of Work mechanism to using the Proof of Stake mechanism already in use by a number of blockchains.

This upgrade will not only upgrade the network in terms of security but will help with scalability. By doing this, the network can allow a greater number of transactions to be carried out.

Ethereum price chart from TradingView.com

ETH trading above $3,000 | Source: ETHUSD on TradingView.com

It is expected that with the eventual “merger” there will be more demand for Ethereum. If this is the case, then with higher demand will come higher network usage. This will inadvertently result in higher transaction fees, which means higher returns for network validators. Moreover, an expected growth like this will see more people lock down ETH to become validators.

Following this trend, the value of Ethereum is likely to rise as more investors demand to get their hands on cryptocurrency. And with the EIP-1559 burnout that has made it a deflationary symbol, the spike predicted by Bloomberg looks more realistic than optimistic.

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