Should I Invest in Ethereum (ETH) in 2021?

[Shiftal]

Ether (Ethereum) is the second most popular cryptocurrency in the world, after Bitcoin. Also, in terms of the overall market cap, it holds the second position in the crypto space with an overall market value of around $180 billion. This makes ETH one of the investment avenues for investors in 2021. If you are still wondering whether Ethereum is a good investment or should I invest in Ethereum in 2021, you’ll find the answer here.

Same as any other cryptocurrency, the price of ETH is subject to the market sentiment, besides the currency supply and demand. If there is a good demand for ETH and the market sentiment is positive, the coin price increases, and vice versa. Also, same as other cryptocurrencies, ETH is volatile in nature, i.e. the price goes up and down quite frequently and significantly. Take a look at the case study below before you buy Ethereum (ETH).

The ETH price in January 2017 was around $10 per coin. In January 2018, only about a year after, the ETH price was over $1,200. That’s a 120 times hike in just one year. No other asset or currency known to humans has ever produced such stellar returns before. Then, ETH again started dropping to come back to the range of $100 about a year later (December 2018). The next crypto bull run came in mid-2020, when the ETH price started rising to ultimately reach the all-time high of $2,000 in February 2021.

And if experts are to be believed, the best of ETH is yet to come. Some predict that the ETH price will reach $2,500 by the end of the year, which is something we all should look forward to.

So, does that make ETH a bad investment or a good investment?

Well, certainly a good one. In fact, Ether is one of the best investment options for anyone looking to make terrific returns in a very short period. It’s even better than bitcoin, in some instances.

Why Did the ETH Price Increase Recently?

The recent boost in the ETH price was driven by a surprising increase in the institutional investor demand. In other words, the industry leaders have started showing interest in cryptocurrencies, which means the future is bright.

PayPal had recently announced that it will start using Bitcoin. Tesla, another tech giant, has lately acquired a huge amount of cryptocurrencies, indicating that it might start accepting crypto in the coming future. These and some other global events caused a sudden and massive spike in the price of Bitcoin, ETH and several altcoins.

The benefit with ETH is that it’s mostly about blockchain technology and promotes the usage & applications of the blockchain rather than the coin itself. Unlike Bitcoin, which is a pure payment currency, ETH is more of a utility token that allows people to build their decentralized applications on Ethereum’s next-gen blockchain.

With ETH 2.0, which is expected to be released soon, users will even be able to earn by staking their ETH.

ETH – Applications & Future Scope

There are many ways ETH is better than Bitcoin or any other cryptocurrency. First, it’s the native cryptocurrency of the powerful Ethereum blockchain, the technology behind the creation of Smart Contracts and DApps.

Second, it’s more affordable than Bitcoin, which makes it a perfect choice for anyone looking for a cheaper investment alternative to Bitcoin.

The third and most important benefit of ETH is its huge long-term potential. While bitcoin is highly volatile and can give good returns in a short period, ETH is ideal for those looking for long-term investment because of its enormous potential. Also, the risk with ETH is lower because of its applications in the decentralized finance industry.

Ethereum is the number one blockchain network in the world. It’s actively being used for developing smart contracts, decentralized apps and other crypto projects. Besides being supported by a community of millions of active users & developers, the Ethereum blockchain is constantly adapting and improving.

The team behind Ethereum is all set to release an update (ETH 2.0) by the end of the year that will make it more powerful and increase its scope.

Will Ethereum Price Increase in 2021?

Most likely.

With the institutional investors investing heavily in ETH and the release of ETH 2.0 around the corner, there is a probability of the coin price getting a significant boost, most probably after the network upgrade is complete later this year. This also makes now the best time to buy ETH before the price starts rising again.

The newest Ethereum upgrade is likely to be the most significant one, which will also boost the ETH adoption globally as well as the coin price.

One of the significant upgrades will be the inclusion of the staking capability. By allowing ETH holders to stake their coins, the network will increase investor profitability by up to 15 per cent. Once ETH staking is enabled, it will also reduce the coin supply in the market, thus giving a boost to the coin price as it becomes scarce.

There are also a number of companies that are planning to introduce ETH futures trading, which will enable users to trade ETH in the futures market and is likely to boost the coin demand and price.

If we talk about ETH price predictions, most experts believe that ETH still has a long way to go and will likely reach the $2,500- $3,000 level by the end of 2021 or in 2022.

Conclusion – Should I Invest in Ethereum?

Absolutely.

If you are looking for a cheaper yet equally powerful alternative to Bitcoin, ETH is the best option for you. It’s powerful, has a huge demand and high potential, which makes it perfect for long-term investors.

How to buy Ethereum in India? The best way to buy ETH is by using the Shiftal P2P exchange, where you can buy ETH directly from other sellers at the best price in the market with attractive offers.

Say no to the exchange fee, join the Shiftal P2P exchange for BTC & ETH trading!

[Malam90]

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