Ethereum
The Ultimate Cryptocurrency to Buy in Bulk for $1,000 Today
Despite a recent slowdown in the cryptocurrency market, there is one cryptocurrency that takes the cake as the ultimate cryptocurrency to invest in today.
After a stellar start to 2024, things have calmed down considerably in the cryptocurrency space in recent months. However, rest assured that these types of lulls are common, even in bull markets, and often present investors with attractive opportunities.
While there are several options available today, some are more appealing than others. Here’s why Ethereum (ETH 1.69%) is the ultimate cryptocurrency to invest in today.
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Some simple math first
From a holistic perspective, it’s easy to see why Ethereum earns the title of the ultimate cryptocurrency to invest in today. It’s arguably one of the most widely used blockchains in the world and offers a range of innovative use cases, including non-fungible tokens (NFTs), borrowing and lending protocols, and stablecoins, to name a few. Not to mention, it’s the undisputed leader of one of the most promising crypto economies. Decentralized Finance (DeFi)Today, over 60% of the DeFi economy resides in Ethereum, making it an ideal investment to gain exposure to the growing potential of the market.
Yet, despite its well-known capabilities, compared to other cryptocurrencies, Ethereum’s price is even further away from its previous all-time high. Bitcoin (CRYPTO: BTC) for example. Today, Bitcoin is about 15% away from its all-time high price of $73,000. As of this writing, Ethereum remains about 35% away from its all-time high price of over $4,600.
Not only is it highly likely that Ethereum will eclipse its previous record high, but it will likely set a new one as this bull market progresses. As for how high? Only time will tell, but rest assured that Ethereum’s leadership position in DeFi and its vast array of use cases will ensure that its price will continue to climb over the years.
Ethereum set for major breakthrough soon
Now let’s focus on a more specific event. It is expected that in the coming weeks (maybe months if things don’t go as planned), an Ethereum spot exchange-traded fund (ETF) will be approved. Bitcoin was the first cryptocurrency to get an ETF Spot ETF approved in January of this year.
There are three reasons why an ETF is so important. First, it democratizes access for investors. Buying and selling cryptocurrencies on exchanges can be difficult for the technically challenged. But with an ETF, it’s as easy as buying through your favorite broker in just a few clicks.
Second, it opens the door to institutional investorsInstitutions are already investing in Bitcoin and now they have their eyes set on Ethereum. Known for their deep pockets, the arrival of institutional investors has the potential to transform the value of Ethereum as wealth managers begin to better understand its fundamental role in the digital economy.
Last but not least, the approval of the spot ETF gives Ethereum an unofficial stamp of legitimacy. Currently, only Bitcoin can make this claim, but that will soon change and put Ethereum in an exclusive category. While this is not enough to drive its price up, it helps provide it with a resilience that is often hard to find in cryptocurrencies.
The road to spot ETF approval appears to be in sight, but there is still time and potential hurdles to overcome before Ethereum gets there. In the meantime, as the rest of the market scrambles and struggles to gain momentum, I will use this time to buy more Ethereum as it trades below its long-term potential. For those with a few extra dollars on their hands looking to increase their exposure to cryptocurrencies, few other options stand out as much as Ethereum.
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.