When the Bitcoin price made it past the $ 12,000 mark after PayPal announced it would tackle digital assets, October created the excitement September failed to deliver. And with data from chains and markets continuing to hold back Bitcoin (BTC), experts believe a 2017 style rally may be underway.
The price of Ether (ETH) has also increased, although confidence in decentralized funding has started to fluctuate as the industry has grown and slowed down. DeFi was a significant starting factor in cryptocurrency’s popularity in 2020, but now other digital assets appear to be booming and could reach considerable heights by the end of the year.
Where Bitcoin and Ethereum Stand
Bitcoin is likely to hit $ 14,283 by the end of the year, according to a recent report from Finder – an online source of comparisons – involving 30 industry experts. According to Andrew Munro, editor of Finder Cryptocurrency, Bitcoin’s reputation as a reliable store of value is the main reason behind the overall optimistic outlook.
By the end of the year, the panel average predicts a price of $14,283 for Bitcoin; other predictions suggest a much higher price, especially given the well-known stock per share flow model developed by anonymous PlanB analysts.
Just as Bitcoin is beginning to show signs of strength over other cryptocurrencies, industry participants also hold a positive outlook on Ether. It is due to increasing trade and market capitalization dominance. Panelist average prediction stands at $513, which represents a 40% increase.
However, in the long term, experts are not so sure about Ether’s sustainability. Munro stated that the most cited factor behind bullish near-term Ethereum predictions was the expected launch of Ethereum 2.0 and the impact of staking on circulating supply.
DeFi Losing Power
Profits from the DeFi alt season trickle back into Bitcoin. Decentralized finance’s long-term sustainability is now in question. A survey by CryptoCompare asked 26 exchange operators in leading trading venues about the future of decentralized exchanges. Only 7.7% found it likely that DEXs will overtake centralized exchanges in two years.
As the DeFi activity slows down, some believe this is good in the long run. Lanre Jonathan Ige, a researcher at Amun AG, said that the mellowing in immediate hype for DeFi will be disappointing for the short-term trader but is likely good overall for the industry. The bubble over the summer was not sustainable but did show that various aspects of DeFi (lending, trading, DAOs) are useful for particular use cases.
Nevertheless, many remain hopeful about DeFi. The majority of panelists in Finder’s cryptocurrency report said DeFi applications would likely continue to steadily grow over the next 12 months in terms of value locked and users’ numbers. Ilya Abugov, a lead analyst at DappRadar, also believes this is the case, citing fewer media hype in DeFi.