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October 4, 2022
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The best investment for 2021? Ethereum! –

Ether’s potential is enormously large, and the project community is beginning to understand the true value behind ETH. Does this mean that Ethereum is the best investment for 2021?

In the second half of last year, we witnessed a growing interest in cryptocurrencies on the part of institutional investors, which largely contributed to a significant increase in the value of BTC. But along with the most popular cryptocurrency in the world, the latter, slightly smaller, was also slowly growing. Today we will look at why Ether has a chance to dominate the market in the near future, and some saythat it is the best investment for 2021.

Price factors

Let’s start with the numbers! ETH has increased by over 1,200%. By comparison, bitcoin has appreciated “only” 700% since the same sharp drops caused by the coronavirus pandemic. Of course, if we take the earlier ATH of both cryptocurrencies (from the 2017/2018 period) as a reference, then ETH’s achievement of $ 1,400 does not look as impressive as $ 40,000 bitcoin. For the investor, however, the possibility of high earnings counts more than the value of the asset.

According to many analysts, after reaching a new peak, the most popular altcoin still has the potential for very large increases. These forecasts look more promising than for bitcoin.

Developers’ demand

In addition to price factors, it is worth paying attention to the possibility of practical use and development of a given technology. Today, Ethereum is the most popular platform for building blockchain projects and creating decentralized applications. The chart below shows the number of unique ERC-20 tokens (based on the Eth network) that were traded during the first years since the launch of Ethereum. Despite the industry-wide growth slowing since the bursting of the 2018 ICO bubble, their number is still high.

The best investment for 2021? Ethereum! - 22

Even though there is solid competition in this area of ​​operation (such as Tron, Polkadot, Cardano, Cosmos and Tezos), the Vitalik Buterin project proudly continues to be a leader in usability and capitalization.

Transaction volume

Transaction volumes are another argument that favors ETH. In 2020, the volume of all transactions recorded on the Ethereum blockchain is over a billion. This is in excess of the annual volume of PayPal, whose 350 million users worldwide have transferred funds worth “only” $ 200 billion.

the best investment

The increasing volume of Ethereum transactions is also significant due to the rapid development of other statistics, so much related to volume. In 2020, new records were set for the number of transactions concluded, wallets created, and active wallets in the Ethereum network. It is not surprising then, the optimistic forecasts of analysts. More and more people are actively using Ethereum.

Development of the DeFi sector

2020 has been an interesting year in the development of DeFi. Since the beginning of last year, the value of funds closed in contracts has increased by 3,300%. The current value is around $ 23 billion. The main development platform for most projects in this area is, of course, the Ethereum network.

These young and innovative financial services have yet to unleash their full potential. This is related to the very high uncertainty of institutional investors, which, although they are cautious about DeFi, still recognize it as a technology with potential.

The best investment?

Ethereum as the best investment in 2021 is quite a real idea. In the cryptocurrency market, ETH has already proved to be the most serious “competitor” of bitcoin thanks to its technological potential. The next 11 months will be interesting for the entire cryptocurrency market, and especially for Ethereum!

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