26 Reasons Why You Should Invest in Ethereum Today

Last Updated October 14th 2021
18 Min Read

There are lots of reasons why you might want to invest in Ethereum. Many think that they have to be a savvy investor with lots of capital — but, with some common sense and research, it’s pretty accessible, even for beginners.

The altcoin market is booming right now, and it’s quite understandable to be confused on which altcoin to go for. While many hold potential, Ethereum stands out as one of the best bets.

The second-largest crypto by market cap is outpacing most altcoins in gains, and speculation is rife that it could beat Bitcoin to become the world’s largest cryptocurrency by market cap.

For someone looking to build a profitable crypto portfolio, there is every reason to invest in Ethereum now. For context, here are 26 reasons why you should invest in Ethereum today.

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26 Reasons Why You Should Invest in Ethereum Today

There are all kinds of reasons why you might want to invest in Ethereum — probably some you’ve never considered. Here are 26 that we found. And If you are a long-term investor, Ethereum could be a very good investment for you.

1. Ethereum Virtual Machine is a big deal

The Ethereum Virtual Machine is one of the biggest strong points of the Ethereum blockchain is the virtual machine. It is a complex programmable system that allows people to build pretty much anything on Ethereum.

Since the project started, thousands of complex programs in smart contracts have been developed on it. Many more are coming up, especially now that the world understands the potential of building on Ethereum. Since these projects need to buy Ethereum for them to use the EVM, then it means that the long-term demand of Ethereum is guaranteed.

2. Ethereum is the second-largest cryptocurrency

The ranking of a cryptocurrency on CoinMarketCap and other platforms matters. A project can be great, but if it is so lowly ranked that people can’t easily notice its existence, then it might find it hard to gain traction.

Ethereum does not have this problem. It is the second-largest cryptocurrency by market capitalization, which means even a crypto newbie gets to see Ethereum, alongside Bitcoin when they first check out the market. 

This has been instrumental to drawing liquidity into Ethereum and by extension its demand. With crypto awareness on the rise, this is a factor that could see Ethereum gain consistently over the years.

Don't Miss: Ethereum Price Predictions

3. Ethereum price potential is high

Ethereum is currently traded at around $2,700. While this may seem high, Ethereum still has lots of room for upside growth. That’s because of the increased uptake of cryptocurrencies globally.

People now see cryptocurrencies as a legitimate alternative investment to traditional investments such as stocks and real estate. This spells good tidings for cryptos with strong fundamentals such as Bitcoin and Ethereum. If the growing uptake of Ethereum in launching tokens is anything to go by, Ethereum hitting $10k or more is a possibility.

4. Ethereum Technical Analysis points to bull strength

Pro-traders use a combination of technical and fundamental analysis before making their bets. In the case of Ethereum, technical indicators are largely bullish.

The crypto’s volume indicators show that buying pressure is high and rising. The same is supported by the moving average where the shorter-term exponential moving averages are trading firmly above the 100 and 200 day moving averages. 

With the technicals that bullish, supported by strong fundamentals, Ethereum is in a good place for more gains in short to medium term. Its current price action reflects this reality.

5. Ethereum is gaining in institutional adoption

Ethereum has been gaining in adoption over the years, and this will only grow with time. This is quite evident in the makeup of the Enterprise Ethereum Alliance (EEA).

This is alliance is made up of some of the largest institutions in the world, including JP Morgan. As decentralization takes root in society, these institutions will build even more on Ethereum and drive up the demand for ETH. This is a factor that will see the level of Ethereum rise in value going into the future. It’s a huge reason to be bullish on Ethereum.

6. Ethereum has the ERC20 standard

The ERC20 standard is probably one of the most significant inventions on Ethereum. It opened up the way for an explosion of projects on the Ethereum blockchain. Today, a huge chunk of projects in the crypto market are ERC20 tokens. The explosion of these tokens followed the ICO bubble of 2017.

Since then, the number keeps on rising with new innovations such as DeFi and NFTs, further opening up the adoption of the Ethereum blockchain. As more of these ERC tokens come into the market, the value of Ethereum will rise.

7. Ethereum 2.0 is a game-changer

Ethereum 2.0 is a big deal and will propel Ethereum to new heights in the long run. The Ethereum 2.0 is a shift of Ethereum from a Proof-of-Work blockchain to a Proof-of-Stake. The move solves two problems. The first one is that of scalability and transaction costs.

Since there will no miners, the rising cost of gas that has posed a challenge in the past will be non-existent after the full transition. Secondly, the shift will make Ethereum more environmentally friendly, a factor that could draw in environmentally conscious investors, especially institutional ones.

Read More: Is Ethereum The Future Of Blockchain Technology?

8. Ethereum has a first-mover advantage

Ethereum is the world’s first platform blockchain and cemented its place in this market with the ICO boom of 2016/17.

Since its launch, many others such as Cardano, have come up. However, none of them has the market reputation of Ethereum.

This explains why most new projects still launch on Ethereum despite its competitors positioning themselves as more efficient. Besides, now that Ethereum is moving to Ethereum 2.0, most of the advantages that its competitors flaunt will be neutralized. This will have the effect of pushing up its market share and, by extension its price.

9. Ethereum has a quality developer team

Ethereum has one of the best developer teams in crypto, rivaled only by that of Bitcoin. A person like Vitalik Buterin is a computing expert and was already creating scenarios for scaling solutions way before the current transition.

With such a developer team at Ethereum, investors can expect this crypto to keep growing in value. That’s because it is an anchor to its long-term growth, especially in adopting new ideas that are coming to the crypto space. This is also a key factor to driving up to drawing in institutional players in the long run.

10. Ethereum is one of the most decentralized cryptocurrencies

In the crypto space, decentralization is the key to success. Quite logical considering that decentralization is the whole essence of the market, both for freedom and security.

Ethereum’s decentralized nature is in the diverse nature of its miners. Just like Bitcoin, no single miner, or group of miners control the Ethereum mining process.

Ethereum 2.0 is also quite decentralized, and no single group of people controls the amount of Ethereum staked. Ethereum is so decentralized that not even Vitalik Buterin can dictate the direction of Ethereum. This is a key security guarantee of Ethereum and one that will play into its value in the long run.

11. Ethereum is time tested

Ethereum is one of the oldest platform blockchains in the market and carries a significant volume of most projects ever launched.

This also means, it has been tested to its ultimate capacity, and the upgrades its doing are based on market realities. A lot of its competitors are using metrics that have not yet tested, and they have a risk of failure.

For context, the Binance chain recently saw an increase in gas prices despite using cost and scalability as a key selling point. Ethereum’s resilience is a huge bullish signal, one that could see its value rise significantly in the long term.

12. Ethereum has lots of long term believers

One of the key indicators of a project with long-term potential is the number of people invested in it for the long run. Ethereum is one such project. Since the launch of Ethereum 2.0, the amount of staked Ethereum has been on the rise and now stands at over 4 million.

This is an indicator that there are lots of people, wealthy ones that firmly believe in the viability of Ethereum as a long-term investment. This is a factor that could see its value grow significantly in the long haul, and makes it a good investment at current prices.

Check Out: Ethereum Price Prediction for 2025 and 2030

13. Ethereum has Lots of media hype

The media hype around a crypto plays a major role in its price action. Whenever a project is on the news for positive reasons, its price tends to jump.

Ethereum is drawing all the right press at the moment. Some of the biggest names in crypto have been taunting it as a potential big mover that could outpace Bitcoin not just in gains, but in market capitalization. Such positive press is key to the long-term value growth of Ethereum.

14. Ethereum is one of the most secure blockchains

Security is one of the most secure blockchains in the market, mainly due to its long UTXO. At the moment, it is still a Proof-of-Stake blockchain, and anyone looking to compromise it would have to generate an almost impossible level of hash power.

Even after it shifts to Proof-of-Stake, it will be almost impossible to compromise it. That’s because of its price, and the huge amount of Ethereum staked. It would be almost economically pointless to try and compromise it successfully. Its security is one of the key factors that make Ethereum a viable investment, both now, and in the future.

15. Ethereum is a store of value

Ethereum is one of the cryptocurrencies that some institutional players believe it is a tenable store of value. This puts it in the same league as Gold, Silver, and real estate.

It’s a big deal given that the trillions of dollars are invested in store of value assets such as gold and silver. If a portion of this amount is spent on Ethereum, its value will grow exponentially over time. It’s a huge validation of Ethereum as a long-term investment.

Read Also: Will Ethereum Make Me Rich?

16. Ethereum has lots of DEXs such as Uniswap

All transactions on the Ethereum blockchain need Ethereum (ETH) for them to go through. This is a big deal because the huge number of DEXs running Ethereum projects create infinite demand for Ethereum.

One of the biggest DEX’s that holds the key to Ethereum’s long-term growth is Uniswap.

Uniswap is a relatively new project but now handles upwards of $5 billion in weekly transactions. This could help anchor the value of Ethereum for years to come.

17. Ethereum has an Easy to understand programming language

The growth of the Ethereum blockchain is premised on the number of projects launching on this blockchain. For people to choose this blockchain over other platform blockchain’s, the programming language used has to be easy to understand. 

Ethereum uses Solidity, which is a programming language that is easy to learn and understand. This means anyone who has a solid understanding of other languages such as Python, and C++ can easily learn solidity. This explains why the language is growing in popularity. The ripple effect of its growth will be an increase in the launch of projects on Ethereum and subsequent growth in value.  It’s a big reason to bet on Ethereum long-term.

18. Ethereum is favoured by better crypto regulations

The regulations around cryptocurrencies are getting better across the world. In many jurisdictions, cryptocurrencies are now commonly accepted as legal tender. Even in important markets like the U.S, the regulations are getting better.

This is evident in the Senate confirmation of a pro-crypto friendly person as the chairman of the Securities and Exchange Commission. All this plays to Ethereum’s advantage. As the second-largest cryptocurrency by market capitalization, Ethereum’s value will be boosted by the huge number of investors that are being drawn into crypto by better regulations.

19. Ethereum is listed on multiple exchanges

The number of exchanges where crypto is listed matters since it can affect liquidity and value appreciation. The more the exchanges, the more the liquidity, and potential for the price increase.

On this front, Ethereum is second to none. Besides the fact that it is listed on pretty much every exchange that exists, almost all exchanges are dominated by Ethereum’s ERC20 tokens.

This is a big deal because as long as the crypto market is growing in adoption, the ease of access to Ethereum and Ethereum-based tokens will have an impact on its value growth.

Check Out: Is Ethereum a Good Buy?

20. Ethereum is pretty easy to store

There are lots of cryptocurrencies, including Ethereum competitors that do not yet have a functional wallet. This can be quite limiting to investors who are apprehensive of leaving their crypto assets on exchanges.

Ethereum does not have this problem. There are lots of easy-to-use wallets where one can store their Ethereum. The best of these is Metamask. Not only is it safe, and decentralized, it also offers instant access to thousands of ERC20 tokens without the need to go through third parties. This is a big reason to invest in Ethereum now, given the current explosion in crypto adoption.

21. Ethereum will benefit from the overall crypto market growth

The entire crypto market is on a growth trajectory. Naturally, this has brought the market to the limelight and drawn in more retail and institutional investors. This is a big deal because as more investors come into the market, so will the value of the market.

For crypto like Ethereum is among the most dominant in the market, this could see its value surge exponentially over time. It’s a good reason to buy into Ethereum now.

22. Ethereum is a forward-looking crypto project

Ethereum is one of the most forward-looking cryptocurrencies in the market. For content, the project has responded to the issue of carbon emissions, cost, and scalability by launching Ethereum 2.0.

Since Ethereum 2.0 is Proof-of-Stake, it cuts on the cost of gas making it easy to transact on this blockchain. It also alleviates the problem of emissions by getting rid of miners. Such progressive moves will keep endearing Ethereum to investors, and drive up its demand. It’s a solid reason to buy into Ethereum now.

23. Ethereum dominates over its forks

All decentralized blockchains can be forked. While this has had the effect of neutralizing most of them, Ethereum is amongst those that stand strong. Its first fork was after the DAO hack that led to millions of dollars in losses. Ethereum forked to help investors recover their assets.

It has remained strong and dominated over its sister chain Ethereum Classic. Lately, there has been talk by miners to fork Ethereum following the Berlin upgrades. However, the project has remained steadfast and is on course to become a Proof-of-Stake blockchain and get rid of miners altogether. That’s a sign of a strong chain, with a steadfast community behind it.

24. Ethereum stands to benefit from the DeFi and NFT Revolutions

If there was ever a reason to invest in Ethereum, then DeFi and NFTs should top the list. These two innovations are changing everything from the world of finance to music, and art. Recently, a digital piece of art sold for $69 million, making it a record holder for one of the most expensive digital art ever sold. The best part is that most of DeFi and NFT markets are based on Ethereum. Therefore, as these two grow, so will the value of Ethereum (ETH).

There is lots of reason to believe in the long-term growth of these two markets. The first and most important one is speculation.

Taking DeFi as an example, investors are increasingly staking Ethereum into projects like Yearn. Finance, and Compound for the enticing yields that they come with. As more people discover the potential for profits that exists in stashing Ethereum into yield-earning projects, the value of ETH will grow as well. Such world-changing innovations are a big reason to invest in Ethereum with a target of both short-term, and long-term gains.

Read Also: Will Ethereum Price Double Due To The Future Of DeFi?

25. Ethereum ETFs are coming

Bitcoin ETFs have been a thing for quite a while now in the crypto space. However, due to regulatory hurdles, they have not become a reality in the U.S., the world’s largest economy.

This is about to change with the coming in of a pro-crypto SEC chairman. Once this happens, Ethereum stands to be one of the cryptos that will have their own ETFs alongside Bitcoin and a few others.

There are a few pointers to such a possibility already. Big banks, such as JP Morgan that are coming up with crypto-focused products have indicated their bullish outlook on Ethereum.

Once products like ETFs become a reality, the excitement they will create in the market could lead to a huge surge in its demand in the long term. In anticipation of such a surge in price, coupled with its current price rally, it makes a lot of sense to invest in Ethereum now.

26. Ethereum could benefit from investor shift to altcoin

Bitcoin has become quite expensive lately and is trading between $45k and $55k at the moment. This means it has locked out many small investors who may have wished to buy a whole unit of Bitcoin.

However, even for those who would wish to buy small units of it, the transaction costs have gone through the roof. This has seen momentum shift more towards altcoins.

This is quite evident in Bitcoin’s declining market dominance that now stands at 42%. As its market dominance drops, one of the altcoins that are reaping from the changing dynamics is Ethereum. Ethereum is benefiting due to its use cases that drive up its prospects for growth.

It is also the second-largest cryptocurrency, which makes it one of the cryptos that are reaping big from the altcoin boom. Ethereum is also boosted by investor hopes that it could do a Bitcoin repeat and probably trade in the $10k and above range in the near term.

Bitcoin has already shown investors that anything is possible in the crypto market. For this reason, it makes sense to speculate on Ethereum as an asset that has lots of potential for value gains in the short to medium term. If its current rally is anything to go by, then Ethereum has a lot of potential for the short-term. It started the year art under $1000 and has since gained consistently to its current $3.5k levels.

Ethereum has increased significantly, and it shows no sign of slowing down. Crypto Experts believe that the value of Ethereum has plenty of growth ahead and that investing in Ethereum is a smart idea for the long-term. Therefore, it could be worth investing in Ethereum ETH while the asset is performing very well. 

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