In recent months the main protagonist in the media has been Bitcoin. After its price increased continuously for several months, positioning it at $ 59,596 at the time of writing this article. However, members of the crypto community know that there are virtual currencies that have performed even more impressive than BTC. Therefore, today we discuss whether Ethereum could reach $ 10,000 in 2021.

The rise of the altcoins

If we focus solely on Bitcoin we could miss out on some of the biggest opportunities in the cryptocurrency market. And is that, although BTC has multiplied its price several times in recent months. This increase in its price pales against the accumulated profits of currencies such as Binance Coin, Ethereum or Uniswap. Which have experienced an exponential increase, driven by the great bull rally of Bitcoin, but also by the rise of DeFi.

Thus, decentralized finance (DeFi) has been gaining popularity since the middle of last year. This has led investors around the world to invest hundreds of millions of dollars in decentralized applications in this field. Which are preferentially located on the Ethereum Blockchain. Thus boosting the use, and therefore the price of this cryptocurrency.

The effects of this rise on DeFi can also be seen in the Binance Smart Chain, a Blockchain designed by the Binance exchange. Which, although it does not host as many decentralized projects as Ethereum, has been receiving more and more decentralized applications in its ecosystem, allowing its native cryptocurrency, Binance Coin, to increase in price. Thus creating a scenario in which analyst and trader Scott Melker considers that Ethereum could reach $ 10,000.

Ethereum at $ 10,000?

Thus, as Melker commented in a recent interview, the main beneficiary in the consolidation of the price of Bitcoin is Ethereum. Cryptocurrency that has been at the forefront of the rise in the price of major altcoins. And that, thanks to this, has a potential for an increase in its impressive price, leading Scott Melker to state that he does not see reasons why it would not reach $ 10,000 per ETH this 2021:

«For me it’s like investing in the Internet in the early 90s ( … ) I don’t see why it’s crazy. It’s basically a little less than a five times more from here (…) Bitcoin made almost triple last year».

Ethereum could reach $ 10,000 according to trader and analyst Scott Melker. Source: Coindesk
Ethereum could reach $ 10,000 according to trader and analyst Scott Melker. Source: CoinDesk

If Ethereum finally manages to reach $ 10,000, we would be in the presence of one of the most important price increases in the history of the crypto market. Well, so much only a year ago the cryptocurrency was quoted in the order of 158 dollars. Having multiplied its price more than 10 times so far, and doing it more than 100 times if it finally reaches $ 10,000.