After a hot start to 2024, things have cooled off considerably in crypto over the last couple of months. However, rest assured these types of lulls are common in even bull markets and often provide investors with valuable opportunities.
While there are several options out there today, some are more alluring than others. Here is why Ethereum (CRYPTO: ETH) is the ultimate cryptocurrency to invest in today.
Some simple math first
From a holistic view, it’s easy to see why Ethereum takes the title of the ultimate cryptocurrency to invest in today. It is arguably one of the most widely used blockchains in the world and boasts an array of innovative use cases, including non-fungible tokens (NFTs), borrowing and lending protocols, and stablecoins, just to name a few. Not to mention it is the unequivocal leader of one of crypto’s highest potential economies — decentralized finance (DeFi). Today, more than 60% of the DeFi economy calls Ethereum home, making it an ideal investment to gain exposure to the market’s burgeoning potential.
Yet, despite its well-known capabilities, compared to other cryptocurrencies Ethereum’s price is further off of its previous all-time high. Take Bitcoin (CRYPTO: BTC) for example. Today, Bitcoin sits about 15% off its all-time high of $73,000. As of this writing, Ethereum remains roughly 35% off of its peak price of more than $4,600.
Not only is it a safe bet that Ethereum will eclipse its previous record, but it will likely set a new one as this bull market progresses. As to how high? Only time will tell, but rest assured Ethereum’s leading position in DeFi and its vast array of use cases will ensure its price keeps climbing over the years.
Ethereum should get a big break soon
Now to focus on a more specific event. It is expected that in the coming weeks (maybe months if things don’t go to plan) a spot Ethereum exchange-traded fund (ETF) will get approved. Bitcoin was the first cryptocurrency to get a spot ETF approved, back in January this year.
There are three reasons an ETF is so important. First, it democratizes access for investors. Buying and purchasing cryptocurrencies on exchanges can be difficult for the technically challenged. But with an ETF it’s as easy as buying through of one’s preferred brokerage with just a couple of clicks.
Second, it opens the door for institutional investors. Institutions are already allocating to Bitcoin and now they have their eyes on Ethereum. Known for their deep pockets, the arrival of institutional investors holds the potential to transform Ethereum’s value as wealth managers begin to better understand its foundational role in the digital economy.
Last but not least, the spot ETF approval gives Ethereum an unofficial stamp of legitimacy. Right now only Bitcoin can make this claim, but this will soon change and put Ethereum in an exclusive class. While this alone might not cause its price to go higher, it does help provide staying power that is often hard to come by in crypto.
The road to the spot ETF approval looks to be in sight, but there is still some time and potential obstacles to be cleared before Ethereum gets there. In the meantime, as the rest of the market jostles and struggles to build momentum, I’ll be using this time to grab more Ethereum while it trades at a discount relative to its long-term potential. For those with a few extra bucks at their disposal and looking to increase their crypto exposure, few other options stand out as much as Ethereum.
Should you invest $1,000 in Ethereum right now?
Before you buy stock in Ethereum, consider this:
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RJ Fulton has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
The Ultimate Crypto to Buy Hand Over Fist With $1,000 Today was originally published by The Motley Fool
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