Why Ethereum will reach $5,300 according to Vitalik Buterin’s roadmap

Analysts have assessed the future prospects for Ethereum, predicting a possible price target of $5,300. This prediction is in line with Ethereum founder Vitalik Buterin's recent updates.

Buterin has shared an updated roadmap for 2024, which he promises will deliver significant developments in the Ethereum ecosystem.

Ethereum will catch up soon

Ethereum, the second largest by market capitalization, has always been a point of interest in the crypto market. It has evolved from a digital currency to an ecosystem for decentralized applications. This dual nature is a major reason for its enduring appeal.

According to Real Vision founder and CEO Raoul Pal, Ethereum's price trajectory is set for a dramatic increase. This forecast is not just a shot in the dark as it is based on a liquidity indicator, a tool analysts use to gauge future asset price movements.

Although Pal warns that these predictions are not set in stone, they indicate strong bullishness for Ethereum.

“Ethereum may be good in the first half of 2024. The target to use the liquid indicator will be $5,300… We should reach an all-time high in Ethereum in the first half of 2024. Let's see how that goes, but I'm very bullish on crypto assets,” Pal said.

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Pal hinted at the impact of ETFs (exchange-traded funds) on Ethereum's performance. He believes that the launch of the Bitcoin ETF could pave the way for the Ethereum ETF, which in turn will stimulate the Ethereum ecosystem.

“Ethereum is just doing what it's supposed to do, but it hasn't given us anything to surprise us with. I think the surprise is that the moment the Bitcoin ETF comes out and people focus on the Ethereum ETF. It keeps the ETH ecosystem alive,” added Pal.

A new road map, a new horizon

Pal's predictions are in line with Vitalik Buterin's 2024 vision. Ethereum's founder has shared an updated roadmap that demonstrates his commitment to continuous improvement and innovation.

One of the key updates includes the implementation of Single Sign-on Finalization (SSF) in the post-merger proof of concept (PoS) update. SSF is expected to solve many of Ethereum's shortcomings in PoS design, leading to faster and safer transactions.

“It's becoming clear that SSF is the easiest way to solve many of the shortcomings of Ethereum's PoS design,” Buterin emphasized.

Developers have made significant progress in other areas, including the EIP-4844, such as the Surge. These improvements will increase Ethereum's efficiency and effectiveness, which is critical to its long-term success.

Buterin's roadmap addresses the challenges of economic centralization in PoS through initiatives like Skrij. This redesign will focus on combating the issues of maximum leveraged value (MEV) and overall stockpiling, which are necessary to maintain the integrity and decentralization of the network.

However, not all developments were straightforward. Due to cryptographic weaknesses in existing architectures, developers have faced challenges with verifiable delay functions (VDFs). Despite these obstacles, the team is committed to studying and improving these activities, highlighting their commitment to the long-term viability of the project.