Ethereum Price: Is Ether Still a Good Investment?

·4 min read
stock data
stock data

Written by Daniel Da Costa at The Motley Fool Canada

Ether, the native currency of Ethereum’s (CRYPTO:ETH) blockchain, has been rocketing in price over the last few years. In 2020 Ether grew from roughly $130 per coin at the start of the year to $730 by the end, an impressive 460% increase.

However, 2021 has also been impressive, growing to roughly US$4,000 per coin, which is another gain for investors of roughly 450%.

Ether has been an incredible investment especially considering it’s already the second most valuable cryptocurrency. But can Ethereum continue to rally even though its price has already seen some massive gains?

Despite Ether’s high price, Ethereum could still be one of the best investments to make today

It can be understandable to look at the performance of Ethereum’s price over the last couple of years and worry that you missed out on the opportunity. But there are actually several reasons why Ether is still one of the best investments to make in the cryptocurrency industry today.

Firstly, it’s still considerably early for the industry, and there will continue to be a massive increase in popularity as blockchain technology becomes more mainstream. And, because Ethereum is one of the best and most popular blockchain networks there is, naturally, it should continue to see an increase in popularity.

In addition, because it’s the second most popular cryptocurrency, there continues to be investment products created around Ether, such as the CI Galaxy Ethereum ETF (TSX:ETHX.B). So, as long as more of these investment vehicles continue to be created, the demand for Ether will continue to grow, which will be a positive influence on its price.

Another reason investors will continue to be drawn to Ethereum’s network, which will result in the price of Ether increasing substantially, is all the potential that projects on its blockchain offer.

For example, some of the most prestigious NFTs are on Ethereum’s network. In addition, there is a tonne of opportunity for investors to learn about and gain exposure to decentralized finance applications. So as more users continue to jump on the cryptocurrency bandwagon, naturally, many will end up using Ethereum.

Plus, another positive development about Ethereum is that it’s currently working to improve all the drawbacks that its network has. This includes faster and cheaper transactions. It’s also started to burn Ether already, which should continue to have a positive impact on Ethereum’s price.

In addition, the available supply of Ether continues to fall, giving it some real potential to continue rallying significantly. In fact, some analysts have even called for Ether to reach $50,000 over the next couple of years. So, if you’re worried you missed out on Ethereum’s potential because its price is so high, there is still a tonne of opportunities for investors today.

What if you don’t have thousands of dollars to invest?

Even if you don’t have tonnes of capital to begin investing right away, with cryptocurrencies, you can buy extremely small denominations, as long as the cost of the transaction makes sense.

Another option to consider if you want to gain exposure to Ethereum’s price is buying an ETF such as the one listed above. Owning these ETFs gives you exposure exactly as if you owned the Ether yourself, and in many cases, could be a cheaper option in terms of transaction costs.

Whichever way you decide to gain exposure to Ether, I’d be looking to do it soon. These cryptocurrencies have been trading rangebound for a while and could break out any day.

Plus, Ether is one of the best long-term investments you can make in the space. So, while Ethereum’s price is still cheap, I’d be looking to take advantage soon.

The post Ethereum Price: Is Ether Still a Good Investment? appeared first on The Motley Fool Canada.

Should you invest $1,000 in Lightspeed POS right now?

Before you consider Lightspeed POS, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Lightspeed POS wasn't one of them.

The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

Learn More Today!

More reading

Fool contributor Daniel Da Costa owns Ethereum. The Motley Fool owns and recommends Ethereum.