If Ethereum can overcome three significant price challenges in September, the network might see brighter days ahead. The Dencun upgrade’s introduction of low-cost blobs for Layer-2 blockchains to quickly scale the network has sparked a surge in activity on Ethereum’s decentralized smart contract network. As a result, gas fees on Ethereum’s base layer have significantly decreased, which, despite reducing validators’ revenues, has led to increased activity on low-fee L2s.
After Dencun took effect in March, Ethereum L2 monthly active users doubled, and fees for using Base, Mantra, Starknet, Blast, and OP Mainnet dropped dramatically. However, Ethereum has struggled to reflect its improvements and future prospects in a consolidated market movement. Its price recently slipped to $2,400, a value last seen in February, whereas Bitcoin has fared slightly better this year. The question remains: will Ether’s price continue to be volatile, or does it hold an advantage over competitors like BNB, Solana, XRP, Tron, and Cardano in the near to medium term?
### 4 Ethereum Price Advantages In 2024
#### 1. Another Wrapped Bitcoin On Ethereum
> Natively put your idle BTC to work on Ethereum. 21BTC on Ethereum gives you:
> • BTC that’s native to Ethereum
> • No Lock-And-Mint technology
> • 100% Backed by BTC
> • Institutional-grade security
> • Deep liquidity
> • Operational excellence
> Here’s what you need to know (/5) [pic.twitter.com/CGY97mqeut](https://t.co/CGY97mqeut)
> — 21.co (@21co__) [September 3, 2024](https://twitter.com/21co__/status/1830984327296930247?ref_src=twsrc%5Etfw)
21co, the owner of Bitcoin ETF issuer 21 Shares, recently introduced another Wrapped Bitcoin asset on Ethereum. This serves as a reminder: Your Bitcoin is a final settlement in a scarce currency on the most secure Web3 layer blockchain. Ethereum allows you to utilize Bitcoin without surrendering it to the establishment it aims to disrupt. While Bitcoin is often held for long-term network effects and global market growth, Ethereum is a promising platform for spending when demand spikes. From finance to gaming, Ethereum’s smart contract networks have a substantial future.
#### 2. Institutional Adoption Marches On
Wall Street’s engagement with Ethereum ETFs has been tentative, with outflows creating resistance for Ether’s price. Nevertheless, institutional stance towards Ethereum remains strong, second only to Bitcoin. Corporate project managers and institutional hedge funds also eye Ethereum’s competitors like Solana and Cardano. Ethereum and ERC20 Layer-2 protocol Polygon (MATIC) power most institutional products on Web3. A recent X post by Adriano Feria, a popular ETH supporter, highlighted the march of corporate projects using Ethereum.
> “Hate to break it to the #Ethereum doubters, but $ETH is well on its way to securing solid institutional adoption, led by industry giants like Coinbase, Circle, BlackRock, and more recently, Sony,” Feria wrote.
Sony’s announcement on August 22 to launch its own Ethereum Layer-2 blockchain, Soneium, indicates more market potential for ETH.
#### 3. Ethereum Price Chart Technicals
ETH had its worst month in two years, falling 22% in August. Mean reversion theory suggests that its price will eventually move back toward its average trend, supporting a rally. In simpler terms, Ether was on sale in August. Expert predictions from active funds, publications, and banks in the Web3 space indicate that ETH may be undervalued.
> What is Ethereum’s price prediction for 2024?
> Our latest study reveals that top analysts, outlets, and fund managers predict [#Ethereum](https://twitter.com/hashtag/Ethereum?src=hash&ref_src=twsrc%5Etfw) will average $6,404 by the end of 2024.
> Read the full study: [https://t.co/FzuIYpuE9D](https://t.co/FzuIYpuE9D) [pic.twitter.com/Lj5TXYtqkF](https://t.co/Lj5TXYtqkF)
> — CoinGecko (@coingecko) [August 16, 2024](https://twitter.com/coingecko/status/1824468673308037196?ref_src=twsrc%5Etfw)
#### 4. Dovish Fed Regime Pivot
> The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation.
> If the supply of money increases at the same rate that the number of people using it increases, prices remain stable.
