The idea of never selling your Ethereum may end up being a good idea. Ethereum, as many analysts believe, can get up to $10,000; this is where many people see this asset going, and we are only a third away from that goal through this current market cycle, and Ethereum is already at three thousand dollars.
In the next six to twelve months, one can easily see Ethereum getting close to $10,000. It may sound like a high price target, but only Ethereum at a 1.2 trillion dollar market capitalization. It is not strange when you think about it, and that is only a short-term target. In the long term, there are several other price predictions and other factors coming into play.
$10,000 is a good price target for Ethereum; besides, Ethereum is the fundamental smart contract platform, it is the beating heart of the cryptocurrency industry. Ethereum is the heart of DeFis, NFTs, Token launches, and so on.
Several things are working in favor in terms of the economics and tokenomics of Ethereum; they are EIP1559, the coming ice age, and moving to proof of stake. EIP1559 will introduce fee burning, which will reduce the supply of Ethereum over time, thereby making it a deflationary asset that makes sure there is less Ethereum every year.
The coming ice-age will drop the inflation rate for Ethereum from its current four percent down to below one percent, meaning one percent per year inflation. This coming ice age is a pretty big deal, so we will be seeing inflation rates dropping very soon.
Proof of stake is a fundamental shift in the economics of Ethereum because it moves the economy for Ethereum from a mind and dump economy to a stake and hodl economy, which is a fundamental shift in the way the economics of the network happen.
You should not sell your Ethereum because Ethereum is a productive asset; you have that deflationary curve which makes it a rare and more value-holding currency over time, but the staking rewards for Ethereum could be amazing.
For instance, Ethereum gets up to $10,000, and you have 100 Ethereum, meaning that you probably had the foresight and gobbled up Ethereum when it was quite cheap at about $100to $200. If you fast forward to a year later, you will realize that 100 Ethereum is worth about $300,000.
If you have 100 Ethereum and it gets up to $10,000, and the staking rewards are great, the annual return for staking is about five percent, which means you are making about $50,000 staking your Ethereum.
Some people are even saying that it could be higher in ETH 2.0 because of all the transaction fees that the validators will be receiving. They will be getting inflation rewards, but big rewards will be coming in from all the transaction fees paid out to the validators. In that situation, you are making a lot of money in passive income; this is why you should not sell your Ethereum.
