Economy
Buy Ethereum Now as Value May Hit $7,609 in 2022—Experts
By Aduragbemi Omiyale
A report by Finder.com has projected that the price of Ethereum (ETH) will likely reach $7,609 in 2022 and could fall to $6,000 by the end of the year due to heavy competition.
In its Ethereum Price Predictions Report, Finder.com’s panel of 33 fintech, cryptocurrency and NFT specialists predicted that ETH will peak at roughly 102 per cent higher than its price at the beginning of the year, advising investors to hold the digital coin.
But the Permission chief product officer Vanessa Harris thinks the move to the proof-of-stake model (PoS) will lead to a significant decrease in ETH’s price and predicts ETH will be worth just $100 by 2030.
“Ethereum has the strongest ecosystem of any smart contract platform but is plagued by high gas fees and low scalability. The move to Proof of Stake is unlikely to solve Ethereum’s scalability challenges though, and we should look to L2s and side chains to support ETH scalability,” she said.
As for the founder of Finder, Fred Schebesta, he predicts ETH will peak at $7,000 before dropping to $6,000 by the end of 2022 due to heavy competition.
“While the network certainly has advantages in global market awareness and developer base, it is also against increasingly strong competition that Bitcoin does not face by contrast,” he stated.
University of Brighton senior lecturer Paul Levy thinks ETH could go as high as $9,000 and will end the year at around $8,000.
“Ethereum, if it stays on top of technical and innovation challenges, will continue potentially erratic growth with the potential to thrive in the medium to longer term. It is an early innovation success story and that innovation potential needs to be matched by further innovation capability,” he said.
Longer-term, the panel predicts ETH will be worth $10,810 by the end of 2025, and $26,338 by the end of 2030. Though significant increases from ETH’s current price, these are 30 per cent and 48 per cent lower respectively than the panel’s predictions in October 2021.
Ethereum’s anticipated move to a PoS will likely lead to a price drop, according to one in ten panellists (11 per cent), while 79 per cent say the move will increase ETH’s price and the remaining 11 per cent say there’ll be no impact or they’re unsure.
Overall 19 per cent of the panel say it’s time to sell ETH, compared to just 10 per cent who say it’s time to sell Bitcoin (BTC). Meanwhile, 52 per cent say it’s time to buy Ethereum, and 30 per cent hold.
The Panxora Group CEO Gavin Smith expects a price drop following the move to PoS and thinks it’s time to sell.
“The improvements provided by proof of stake will not outweigh the negative impact of excessive gas prices. The change made recently to gas calculations will cancel out any reduction in gas prices that proof of stake would have provided.
“ETH is likely to be surpassed by a number of other smart contract blockchain protocols over the next 5 years,” he added.
Meanwhile, Thomson Reuters’ technologist and futurist Joseph Raczynski is part of the majority who says PoS will lead to an increase in ETH’s price and says ETH will cost $8,000 by the end of 2022, before reaching $15,000 by the end of 2025.
“Scalability and throughput are king, but doing this in a decentralised manner with security is critical – POS on ETH in 2022 should get them there.”
CoinSmart CEO and co-founder Justin Hartzman agrees with Raczynski but gave a slightly lower prediction of $7,500 for the end of 2022. He adds that the only real concern he has regarding PoS is the speed of its rollout.
“If the Ethereum 2.0 model is successful and PoS is properly implemented, we can expect ETH to moon real hard. My only concern is the speed of the rollout. Ethereum tends to be a bit slow with its updates, however, the community mostly supports any and all of their initiatives,” he said.
By Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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