As Ethereum (ETH) continues to solidify its position as the leading blockchain platform for decentralized applications, a new development has been announced that could significantly impact its price trajectory.
Currently trading at $2,658, Ethereum has shown a year-to-date (YTD) gain of 16.5%, a one-week gain of 3.4%, and a one-day gain of 1.36%.
Sony Block Solutions Labs, a venture between the Sony Group and Singapore-based Startale Labs, has announced the creation of a new Layer-2 blockchain called “Soneium”, designed to attract app developers across a wide range of sectors, including entertainment, gaming, finance.
With Sony’s launch of the Soneium blockchain, an Ethereum Layer-2 (L2) network, Ethereum is positioned for a potential surge, with ripple effects expected across several other cryptocurrencies.
In light of this development, Finbold has leveraged ChatGPT-4, OpenAI’s most recent and advanced AI chatbot model, to offer insights into how Ethereum is likely to trade, considering the key factors influencing its future price trajectory.
Impact of Soneium on Ethereum’s price
Sony’s entry into the blockchain space with Soneium, built using rollup technology on the Optimism (OP) Stack, marks a significant milestone for the Ethereum ecosystem.
The Soneium blockchain is set to leverage Ethereum’s scalability, and decentralization while integrating with Sony’s extensive product portfolio, including Sony Music, Sony Pictures, and Sony Bank, over the next two years.
This integration has the potential to significantly increase demand for Ethereum by driving network activity within Sony’s ecosystem, which, as it embraces blockchain technology, will directly lead to upward pressure on Ethereum’s price.
For example, Optimism, the technology underpinning Soneium’s roll-up mechanism, could see increased adoption and value as more projects integrate with Soneium. Additionally, Chainlink (LINK), a decentralized oracle network, is expected to play a crucial role in providing real-world data to Soneium, driving demand for its services and the LINK token.
The Graph (GRT), which offers indexing and querying services for blockchain data, is likely to benefit as Soneium’s ecosystem grows and more decentralized applications require efficient data management solutions.
Astar Network (ASTR), which is integrating its zkEVM project into Soneium, could also see a boost in visibility and utility, potentially driving up the value of the ASTR token.
ChatGPT-4’s Ethereum price prediction
According to ChatGPT-4, Ethereum’s price outlook appears increasingly bullish.
In the short term, as Soneium progresses toward its testnet launch and initial integrations with Sony’s products, Ethereum could target a price range of $2,800 to $3,000 by the end of Q4 2024.
This growth would be fueled by the anticipation of increased network activity and the positive market sentiment surrounding Ethereum’s expanding role in the blockchain space.
Looking further ahead, if Soneium successfully achieves its integration goals and onboards a significant number of enterprises and developers, Ethereum’s price could rise substantially.
By mid-2025, ETH could potentially reach $3,500 to $4,000, driven by sustained demand for its network capabilities and the growing adoption of its Layer-2 solutions.
In conclusion, as this new Layer-2 solution enhances Ethereum’s scalability and attracts major enterprise adoption, the demand for ETH is likely to increase, driving its price higher.