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The Ultimate Cryptocurrency to Buy in Spades with $1,000 Today
Despite the recent slowdown in the cryptocurrency market, there is one cryptocurrency that takes the title of the best cryptocurrency to invest in today.
After a hot start to 2024, things have cooled down significantly in the cryptocurrency space over the past couple of months. However, rest assured that these types of lulls are common in bull markets as well and often present investors with valuable opportunities.
While there are several options available today, some are more appealing than others. Here’s why Ethereal (ETH -1.97%) is the best cryptocurrency to invest in today.
Image source: Getty Images.
First some simple math
From a holistic perspective, it’s easy to see why Ethereum takes the title of the ultimate cryptocurrency to invest in today. It is undoubtedly one of the most widely used blockchains in the world and boasts a number of innovative use cases, including non-fungible tokens (NFTs), lending and borrowing protocols, and stablecoins, to name a few. Not to mention, it is the unequivocal leader of one of the economies with the highest potential in cryptocurrency: decentralized finance (DeFi)Today, over 60% of the DeFi economy is based on Ethereum, making it an ideal investment to gain visibility into the market’s growing potential.
However, despite its well-known capabilities, compared to other cryptocurrencies, Ethereum’s price is further away from its previous all-time high. Take Bitcoin (CRYPTO: BTC) for example. Today, Bitcoin is about 15% off its all-time high of $73,000. At the time of writing, Ethereum is about 35% off its all-time high of over $4,600.
Not only is it a safe bet that Ethereum will eclipse its previous record, it will likely set a new one as this bull market progresses. How high? Only time will tell, but rest assured that Ethereum’s leading position in DeFi and its wide range of use cases will ensure that its price will continue to rise over the years.
Ethereum Should Have a Big Breakthrough Soon
Now, to focus on a more specific event. A spot Ethereum Exchange-Traded Fund (ETF) is expected to be approved in the coming weeks (maybe months if things don’t go as planned). Bitcoin was the first cryptocurrency to get a Spot ETFs approved, already in January of this year.
There are three reasons why an ETF is so important. First, it democratizes access for investors. Buying and purchasing cryptocurrencies on exchanges can be difficult for the technically incompetent. But with an ETF, it is as easy as buying through your favorite broker with just a couple of clicks.
Second, it opens the door to institutional investors. Institutions are already allocating funds to Bitcoin, and now they’ve set their sights on Ethereum. Known for their deep pockets, the arrival of institutional investors has the potential to transform Ethereum’s value as asset managers begin to better understand its critical role in the digital economy.
Last but not least, spot ETF approval 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 class. While this alone may not cause its price to rise, it does help provide resistance that is often difficult to come by in cryptocurrencies.
The road to spot ETF approval appears to be in sight, but there’s still time and potential hurdles to overcome before Ethereum gets there. In the meantime, as the rest of the market churns and struggles to build momentum, I’ll use this time to grab more Ethereum while it trades at a discount to its long-term potential. For those with a little extra cash on hand and looking to increase their cryptocurrency exposure, few other options stand out as much as Ethereum.
Mr. 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.