What can Ethereum merchants and investors wait this year? While March 2025 certainly showed that Ethereum can be as volatile as any other cryptocurrency, the price of Ethereum has nevertheless kept a strong ascending trajectory over time. Founded in 2015 with an initial price of the currency offer (ICO) of only $ 0.30, the native piece of Ethereum, Ether (ETH), reached an ICO of $ 1,400 by 2017 and exceeded $ 2,000 in early March (although the room has since dropped under $ 1,900). Today, Ethereum is the second most accepted and widely used digital active in the world (after Bitcoin).
The rear winds behind the price of Ethereum
Cryptocurrencies markets are particularly volatile this month due to an unpredictable regulatory environment. However, Ethereum has several solid rear winds that stimulate its momentum that have maintained optimistic investors about its future, in particular a growing demand for decentralized finances, technological upgrades that allow blockchain to meet the demand and the launch of July 2024 of nine funds exchanged (ETF). However, one of these tail winds (ETF) can vacillate this month.
Increasing demand for compliance with and intelligent
The growing demand for decentralized financial applications (DEFI) is the main rear wind behind Ethereum. Unlike Bitcoin, which was designed to empower peer trading, Ethereum infrastructure was designed to support DEFI by allowing users to establish smart contracts.
These protocols are not really contracts, but rather automated scripts that work on Ethereum blockchain. These scripts safely store digital agreements – then implement payments or other actions (such as data transfers) when the conditions specified in the script are met. These automated protocols allow users to manage complex transactions in advance without the need for third parties or centralized bank.
Thus, for example, developers can organize a game on the blockchain that pays players’ rewards in Ethereum. An artist can use smart contracts to sell NFT and collect payment. Intelligent contracts can even be used to automate the management of the supply chain for goods and services by providing payments on blockchain when the items are delivered. As the request for DEFI (or DAPP) and NFTS application increases, the network activity of Ethereum too. The Ethereum blockchain currently dominates the Defi market, despite the challenges of competitors like Solana.
Technological upgrades
A large part of Ethereum prices growth occurred following a series of network upgrades that helped Ethereum meet the growing demand for smart contracts. Last September, the “fusion” (also known as “Ethereum 2.0”) transferred the blockchain platform to a model of proof of implementation (POS) from a work proof model (POW). This allowed Ethereum to speed up transaction times and reduce transaction costs (using less computing power).
Ethereum continued to rely on the success of the fusion, deploying various “layer 2” applications. These new technologies are superimposed “on” blockchain, accelerating the transaction rate of Ethereum by treating more transactions on the main blockchain.
One thing that makes investors look closely is the promise of a new upgrade, the next pectra, which is currently in beta version and could reach the main network in the coming months.
ETF
In addition to the capacity to treat faster and cheaper transactions, increased Bitcoin type interest in Ethereum have increased merchants, investors and large institutions after receiving regulatory approval to issue ETFs. This rear wind can be vacillating, however, because Ethereum has just undergone a series of ETF outings during the drop in March on the cryptography market. The nine Ethereum ETFE lose around $ 415 million, while Bitcoin ETFs have really rebounded.
Could this point out a more fragile demand for the second blockchain in the world? Merchants look carefully. Many could depend on Pectra. A successful release of Pectra could stimulate a strong recovery for Ethereum this spring, but a weak or delayed version could leave Ethereum vulnerable on the crypto market, with smaller and faster channels like Solana eager for more market share.
Investment involves risks and your investment may lose value. Past performance gives no indication of future results. These statements do not constitute and cannot replace investment or financial advice.
