Digital asset investment firm’s Magnetic co-founder Megan Kaspar has projected ethereum will trade in the range of $8,000 and $10,000 by the end of the year, almost five months after predicting the crypto’s latest record price level.
Speaking to Yahoo Finance Live, Kaspar noted that the upcoming development to the ethereum network, specifically the shift towards the proof of stake model, will spur the new price rally.
She added that the update would see ethereum join bitcoin in the $1 trillion market capitalization category. According to Kaspar:
“The shift to proof of stake for block validation reduces carbon emissions by 99.9%, making ethereum a green technology. So these two updates on the network alone could push ethereum to a trillion-dollar market cap which is where bitcoin is at today — that would make ethereum around $8,000 to $10,000.”
Ethereum to potentially attract institutions after network update
Additionally, with the network update, ethereum is projected to use less energy, an aspect that Kaspar believes will drive institutional investors to adopt the digital asset. With more institutions potentially taking an interest in ethereum, Kasper added that the price might hit $100,000 in the coming years.
“Institutions are mandating that they invest in clean green technologies, and that’s what ethereum is becoming. Unfortunately, bitcoin’s proof of work network will not be that unless they choose to shift as well,” said Kaspar.
In January, Magnetic co-founder claimed that investors were overlooking ethereum’s potential when trading at around $1,200. He predicted that the asset would spike to the mid-$3,000 level. On May 9, ethereum hit an all-time of $3,975.
Furthermore, Megan views bitcoin’s ongoing momentum culminating into a high of about $200,000 by the end of the year. By press time, bitcoin was trading at $57,890, according to data provided by CoinMarketCap