Written by Daniel Da Costa in The Motley Fool Canada
ether, Home currency Ethereum (CRYPTO: ETH) Blockchain prices have skyrocketed over the past few years. In 2020, Ether grew from about $ 130 per coin at the beginning of the year to $ 730 by the end of the year, a significant increase of 460%.
However, 2021 was also impressive, growing to about US $ 4,000 per coin. This is another benefit for investors, about 450%.
Ether was an incredible investment, especially considering that it is already the second most valuable cryptocurrency. But can Ethereum continue to rise even though the price of Ethereum has already risen significantly?
Despite the high price of Ethereum, Ethereum may still be one of the best investments today
Looking at Ethereum’s price performance over the last few years, it’s understandable to worry about missing an opportunity. But in reality, there are several reasons why Ether is one of the best investments to make in today’s cryptocurrency industry.
First, it’s still quite early on for the industry and will continue to grow significantly in popularity as blockchain technology becomes more mainstream. And since Ethereum is one of the best and most popular blockchain networks out there, of course, it should continue to grow in popularity.
In addition, as it is the second most popular cryptocurrency, there are still investment products created around Ether. CI Galaxy Ethereum ETF (TSX: ETHX.B). Therefore, as long as these investment instruments continue to be created, the demand for Ether will continue to grow, which will have a positive impact on its price.
Another reason investors continue to be attracted to Ethereum’s network, resulting in a significant increase in Ethereum prices, is all the possibilities that the blockchain offers.
For example, some of the most famous NFTs are on the Ethereum network. In addition, there are many opportunities for investors to learn about decentralized financial applications and gain exposure. So, of course, as more users continue to ride the tide of cryptocurrencies, more users will use Ethereum.
In addition, another positive development on Ethereum is that we are currently working to remedy all the shortcomings of the network. This includes faster and cheaper transactions. It has already begun to burn Ethereum and should continue to have a positive impact on Ethereum prices.
In addition, the available supply of Ether continues to decline and may continue to recover significantly. In fact, some analysts are demanding that Ether reach $ 50,000 over the next few years. So even if you’re worried that you’ve missed the potential of Ethereum because of the high prices, today’s investors still have plenty of opportunities.
What if I can’t invest thousands of dollars?
Even if you don’t have a lot of capital to start investing right away, cryptocurrencies allow you to buy very small denominations as long as the cost of the transaction makes sense.
Another option to consider if you want to be exposed to the price of Ethereum is to buy an ETF like the one above. Owning these ETFs gives you exposure as if you own Ether, and can often be a cheaper option in terms of transaction costs.
Whichever way I decide to touch Ether, I’m thinking of doing it right away. These cryptocurrencies have been trading rangebound for some time and can occur at any time.
In addition, Ether is one of the best long-term investments that can be made in this area. So while the price of Ethereum is still cheap, I would love to use it soon.
Post Ethereum Price: Is Ethereum Still a Good Investment? First appeared in The Motley Fool Canada.
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A stupid contributor, Daniel da Costa, owns Ethereum. Motley Fool owns and recommends Ethereum.