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Ethereum To $20K? Investor Says Real-World Adoption Holds The Key

Ethereum To $20K? Investor Says Real-World Adoption Holds The Key
© Copyright Image: NewsBTC

Ethereums chances of reaching the $20,000 level are fueling debate among investors and analysts. The success of the Ethereum network is dependent on real-world usage and rising activity on its platforms, so it is an area of focus in the cryptocurrency space.

Real-World Usage Is The Key

Ryan Berckmans, an investor in Ethereum, thinks that the key to a $20,000 ETH price is practical use. He says that the high fees, while normally a disadvantage, are actually an indicator of faith in the altcoin. If users are paying more, it is because they trust in the value of the network.

Berckmans makes the comparison with Bitcoin, which continues to hold value despite 99% of its usage being centralized. He reiterates that Ethereum needs to pay attention to developing its real-world growth if it is to replicate this success.

Importance Of High Fees

Restoring high total fees is critical for Ethereums price increase. Berckmans argues that even if a hypothetical scenario sees $1 trillion in stablecoins on Ethereums Layer 1, it wouldnt be enough without high fees to back it up.

He suggests that the Ethereum network must prioritize robust growth to ensure that investor confidence is restored. Without this growth, reaching the ambitious target of $20,000 seems unlikely.

Scaling Through Layer 1 And Layer 2

Berckmans stresses the need for more Layer 1 applications and better integration with Layer 2 solutions. This expansion is vital for sustainable growth. Ethereum must increase the distribution of its Layer 1 assets to Layer 2s while also diversifying the solutions available on Layer 2. This kind of scaling is essential to accommodate growing network activity and user demand.

Focusing On Utility-Driven Growth

As Ethereum celebrates the 10-year anniversary of its mainnet, Berckmans insists that the network has come a long way but still has much further to go.

Ethereum is the most capitalized blockchain by application but will need to scale dramatically to maintain its position. By prioritizing the development of a culture centered around real-world uses and economic development, the crypto asset can build a bridge to its price target.

The Ethereum network is at a crossroads. The altcoin needs to maximize real-world usage and have growth at the top of its agenda. In doing so, it may well hit that much-sought $20,000 target in the future at least according to Berckmans.

Featured image from Gemini Imagen, chart from TradingView

Read more: https://www.newsbtc.com/news/ethereum/ethereum-to-20k-investor-says-real-world-adoption-holds-the-key/

Text source: NewsBTC

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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