Should You Buy Ethereum While It's Still Below $2,000?
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Loading... - Shannon Bell
- 16 Feb 2023
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Ethereum is one of the strongest crypto investments, with a unique set of advantages
This year has been off to a positive start for crypto investors, with many cryptocurrencies surging over the past several weeks.
Ethereum (ETH 8.51%) is currently up by more than 26% so far this year, after falling by nearly 68% throughout 2022. This growth is promising for investors, giving hope that perhaps the worst of this crypto winter is behind us.
Ethereum was recently priced at just under $1,500 per token. Many investors are optimistic about its potential, though, and there's a chance it could soar past $2,000. Does that mean now is the time to buy?
Is Ethereum still a good investment?
Crypto in general is still largely speculative. Nobody can say for certain what its future looks like, or whether it will even exist a decade or two from now. When you're choosing where to invest, then, it's wise to focus on a cryptocurrency's long-term potential.
At the moment, Ethereum is one of the strongest investments in the crypto sector. It has a unique set of advantages, including:
- A first-mover advantage: Ethereum was launched in 2015, well before competitors like Solana, Cardano, and Avalanche. That first-mover advantage has helped it grow into one of the most widely used blockchains in the crypto industry.
- A go-to platform for dApps: Ethereum is also the most popular network for decentralized applications (dApps), including DeFi projects, non-fungible token marketplaces, and metaverse uses. It's also an open-source blockchain, meaning developers can create new projects on the network. If any of these projects take off, Ethereum will benefit from it.
- A home for other cryptos: Ethereum can also host other cryptos on its network, and it's home to several high-profile projects including Shiba Inu, Polygon, The Sandbox, and Decentraland. If any crypto hosted on Ethereum's blockchain succeeds, Ethereum itself will thrive as well.
Like any investment, Ethereum also has its downsides. The network continues to struggle with sluggish transaction speeds and high gas fees, for example, which have been causing frustration among users.
But developers have been diligently working on upgrades to improve the blockchain. The much-anticipated update of 2022, The Merge, went off without a hitch and successfully transitioned Ethereum from a proof-of-work protocol to proof of stake. And its upcoming upgrade, Shanghai, will help improve the staking process.
Ethereum also has future upgrades in the pipeline to increase its efficiency and reduce fees, and the most important of these updates is currently slated for sometime in 2023 or 2024. Read More…
