Indodax Boss Predicts Ethereum's Asset Value Will Continue To Increase

Ethereum illustration (coindesk)

JAKARTA - The value of the Ethereum crypto-asset reaches its highest price. This positive trend is predicted to continue for some time to come.

Indodax CEO Oscar Darmawan said ethereum increased 5 times from the beginning of this year. Ethereum has registered an increase of more than 400 percent or more than five times from the beginning of the year to date.

"Developers have welcomed the new Ethereum network. As is well known, Ethereum is in the process of upgrading to Ethereum 2.0 to solve the problems that have been happening in the Ethereum network," Oscar said in a written statement, Thursday, May 6.

The price of Ethereum was originally only around Rp10 million. On an annual basis, Ethereum is increasing by thousands of percent. May 2020 ago, Ethereum was only Rp3.5 million. As for a week ago, Ethereum broke its highest price in the history of Rp40 million.

Blockchain developers, especially decentralized finance, he said, are also ready to welcome an Ethereum upgrade. Recently, the total market capitalization of decentralized finance (DeFi) has reached US$ 100 billion.

“Ethereum is a crypto that has a network to create new cryptos, such as decentralized finance (DeFi). DeFi developers are ready to welcome changes to the Ethereum network that is faster and cheaper. Because Ethereum is being upgraded to Ethereum 2.0, "he said.

According to Oscar Darmawan, the Ethereum upgrade has informed the proof of staking road map, including the sharding feature, a long-awaited feature. Sharding will expand Ethereum's capacity to process transactions by dividing the database into 64 new mini blockchains. This is what will solve the bottleneck on the blockchain network.

“The Ethereum 2.0 upgrade is an upgrade that makes Ethereum much better. Developers and investors are ready to welcome the evolution of Ethereum,” he explained.

This price increase also occurred due to a large number of uses of the non-fungible token (NFT) auction system which made it easier for art workers such as animators, photographers, and even technology creators such as developers to sell their work by auction. NFTs mostly use the Ethereum blockchain network and their auctioneer payments also use these tokens.

“Ethereum is a platform for DeFi and NFT. Both are on hype. Hence, the price of Ethereum is on the rise, "he said.

Oscar Darmawan said that the EIP-1559 upgrade would burn or destroy Ethereum. This is one of Ethereum's ways to reduce the maximum supply in the future.

“Ethereum has shortcomings because of its unlimited or unlimited supply. So, the supply of Ethereum will decrease in the coming years. The rarer the supply of a crypto asset, the higher the price. This is the reason Ethereum will rise in the future," he said.

As a place for the birth of crypto assets, Oscar estimates that the price of Ethereum can still rise again if a new ecosystem is found in the crypto and blockchain world. As happened in the DeFi and NFT ecosystems.

“Years ago, we never heard of DeFi and NFT. However, they are present and widely used. If there is a new ecosystem, Ethereum is ready to welcome it. And the price will also increase," he concluded.