Ethereum is an open-source and decentralized platform that underpins most of the cryptocurrency industry.
Today we answer the question is Ethereum a good investment? We will cover the performance of the cryptocurrency, offer some data surrounding highs and lows, and a review of a top broker from which to buy crypto assets.
How Ethereum Has Performed Since Launch & in 2023
Prior to placing an order to invest in cryptocurrency, you need to have some idea of how it performs in the market.
Using the best crypto analysis tools is a popular way for investors to gauge the overall health and volatility of the markets. Ethereum was launched in July 2015 at a price of $0.75 per token. Within three months, Ethereum fell to its all-time lowest value of $0.42. Tokens briefly hit over $1,360 in January 2018, before falling again and remaining below $1,000 until January 2021.
The cryptocurrency reached new highs of nearly $4,170 in May 2021 before plummeting by around 60% to almost $1,700 in July the same year. The all-time highest value of this crypto asset was in November 2021 when tokens reached over $4,890.
This illustrates an increase of almost 652,000% since Ethereum was first launched. As is the nature of cryptocurrencies, this high didn’t last. By the following month, Ethereum had fallen by around 8% to a little over $4,500.
If you had chosen to invest in Ethereum upon its release, you would still be looking at very strong gains of 411,000%. As such, if you had invested $1,000, this would translate to a portfolio of ETH tokens worth a whopping $4.1 million by early 2022.
Ethereum remains the most-used and built-upon blockchain, with more dApps built on it than any other chain, more volume, and five-times more TVL (Total Value Locked – the value of dApps built on it) than any other chain, according to DeFiLlama.
As we’ve touched on, had you decided to invest in Ethereum between its launch in 2015 and the start of 2018, you would have paid anywhere between $0.75 and $1,360.
Ethereum had not traded below $1,000 from early 2021 until a brief dip in June 2022 before it went on to recover back to nearly $2,000 in mid-August as the Merge drew close.
Interestingly, around the time of Ethereum’s all-time high of around $4,890 in November 2021, the cryptocurrency’s notoriously high transaction price fell by approximately 50%. More recently, Ethereum has experienced heightened volatility in 2022, this is the same for many markets.
At the start of 2022, Ethereum was nearly $3,770. The cryptocurrency’s value continued to fall, before hitting around $2,400 at the end of January, the lowest Ethereum had been seen since July 2021.
Even before the conflict in Ukraine, Ethereum’s volatility was fueled by signs that the Federal Reserve may begin hiking rates.
More crypto legislation, as well as the idea of developing government-issued digital money, has piqued the curiosity of government authorities – Bitcoin’s price has been on a similar downward trend due to such developments.
Between April 2020 and 2022, Ethereum traded at a low of just over $1,700 and a high of around $4,890. In the same time frame, Ethereum increased in value by almost 28%, whilst Bitcoin fell by a little over 34%.
Since then, however, ETH has largely been on a downward trend except for a few weeks in July and August when investors were excited by the upcoming Merge – a major upgrade that saw the blockchain switch from Proof-of-Work (PoW) to Proof-of-Stake (Pos) and increase its speed and scalability, as well as reduce its energy consumption by 99.99%.
So far, though, the Merge has been a ‘buy the rumour, sell the news’ event, with the price immediately crashing after it went live and dropping back to its current price, as of November 2022, of around $1,200.
Unfavorable economic conditions – such as rising inflation, interest rate hikes, the European energy crisis, and the Russo-Ukranian War – have all hit the coin, despite its continued place as, by far, the most consistently used and built-upon blockchain.
Cryptoassets are a highly volatile unregulated investment product.
Ethereum Highs and Lows
We’ve covered Ethereum’s performance since its inception and have begun to uncover whether the crypto-asset makes a sound investment.
For a recap, see the highs and lows of Ethereum here:
- Ethereum launch July 2015 – $0.75
- October 2015 – Ethereum falls to all-time low of $0.42
- January 2018 – ETH rises to a little over $1,360, over 181,000% increase since launch
- May 2021 – Tokens increase further, to almost $4,170, a rise of 990,000% since its an all-time low
- July 2021 – Plummets to $1,700, a decrease of around 60% in two months
- November 2021 – Reaches an all-time high of $4,890, an increase of almost 158% in four months
- January 2022 – Ethereum plummets to around $2,400, a fall of approximately 50% since its all-time high two months earlier
- June 2022 – ETH briefly crashes below $1,000 for the first time since January 2021
- July and August 2022 – ETH increases to nearly $2,000 ahead of the upcoming Merge upgrade
- September 15, 2022 – Ethereum completes the Merge upgrade, switching from PoW to PoS, increasing speed and drastically reducing energy consumption
- September 2022 – ETH drops again as investors ‘bought the rumor, sold the news’
- November 2022 – ETH trading at around $1,200 – 75% down from its all-time high
These spikes and crashes throughout its history should give you a better understanding of Ethereum’s volatility and whether it’s the right investment for you. Of course, all cryptocurrencies are volatile and speculative,
Ethereum Price Prediction
When researching ‘is Ethereum a good investment?’ Bear in mind that any price predictions you come across should be taken as speculation, especially long-term. This is usually based on technical analysis, studying variables of past, and current trends.
With that said, market analysts are expecting more pain in the immediate term, with some traders predicting a sub-$1,000 ETH that could even test $800 or lower.
The price is expected to recover somewhat before the end of the year and into 2023, with bullish sentiment eventually taking over with the next Bitcoin halving approaching in early 2024.
Some predictions say by the end of 2025, the average expected price of Ethereum will be over $9,560.
Depending on which analysis you study, the maximum forecasted value of Ethereum in 2025 is around $12,780, while the lowest expected value is $6,400.
Ethereum Utility – Is It Investable?
Ethereum is one of the original cryptocurrencies and has long been the top altcoin on the market, therefore one of the first people to think about adding to their portfolio.
This first-mover advantage is likely to be so strong that it will remain the default choice as the smart contract industry matures.
The utility of this cryptocurrency is much higher than that of Bitcoin making it easier to spend ETH.
Ethereum’s technology is used in everything from NFTs, and business blockchain solutions to DeFi apps. Ethereum’s native token, ETH is one of the most valuable cryptocurrencies in the space.
See some of Ethereums uses below:
- Developers may use Ethereum to raise funding for their own projects by creating a contract and soliciting pledges from the general public
- Some of the best NFT games are built on the Ethereum blockchain, as such many NFT marketplaces accept ETH tokens
- The Merge was successfully completed, making Ethereum faster and 99.99% more energy efficient
- Another upgrade, Shanghai, is in development and will introduce Sharding – making Ethereum transaction speed even quicker
- Ethereum is the leading blockchain for dApps with nearly 600 protocols built on it and 5-times more TVL than its rivals
After the release of Ethereum 2.0, the existing chain will become the ‘Beacon Chain’, which will operate as a settlement layer for smart contract interactions on other networks. E
Where to Buy Ethereum
Before you go ahead with your Ethereum investment, you will need to find and sign up with a reputable trading platform with cheap trading fees. You should also think about how to store your Ethereum tokens in safety.
eToro – Top Platform to Invest in Ethereum in 2023
eToro provides a service for 25 million traders with varying levels of experience and is regulated by the SEC, as well as other bodies. After creating an account, you can make a deposit using a plethora of payment methods, we found this to include convenient e-wallets such as Skrill, Neteller, and PayPal.
Other accepted deposit types include debit and credit cards, ACH, and bank wire transfers. The minimum deposit is just $10 and if you are funding your account with US dollars there is no fee.
Even newbies can invest in Ethereum with ease as the eToro platform is really easy to use and placing an order takes seconds. There is a simple fixed commission fee to invest in Ethereum, this is just 1%. As such, if you allocate $100 when placing an order, the broker only takes $1.
An advantage of buying cryptocurrencies at eToro is that you can keep the tokens within your portfolio for easy access. There is also a free cell phone app so you can invest in Ethereum on the go. More experienced investors will probably prefer to keep purchasing crypto assets in the eToro Money wallet.
Cryptoassets are a highly volatile unregulated investment product.
Should I Buy Ethereum?
There are a number of methods to benefit from the popularity of Ethereum. You may still be asking yourself ‘is Ethereum a good investment?’
See a list of the key benefits of Ethereum :
- One of the original cryptocurrencies, and usually only second to Bitcoin in terms of market capitalization
- Ethereum is much faster than Bitcoin
- Real-world applications such as DeFi, web-browsing, digital identity and supply chain management, finance/payments, security, health applications, and more
- It is the leading blockchain for dApps, NFTs, and blockchain gaming
- The Merge was successfully completed making it extremely fast and energy-efficient
- Sharding is on the way, allowing ETH to process 100,000 transactions per second
A direct Ethereum investment is the simplest way. It poses the most danger, but also the largest possible return, due to its extraordinary volatility. eToro will allow you to risk just $10 when you invest in Ethereum, this is because the broker supports fractional stakes.
Today, we have shed some light on cryptocurrencies and tried to answer the question ‘is Ethereum a good investment?’
There are many benefits of adding Ethereum to your portfolio, because of its place as the top altcoin in the market and, by far, the most used and usable blockchain in the whole space.
Ethereum is the market leader for dApps – boasting more protocols than any other chain and five times more TVL than its rivals.
In real terms today, no other crypto asset comes close to its utility or user base, and Ethereum is among the most ‘sure-thing’ investments in crypto.
However, because Ethereum is so established, the potential for growth and high returns is somewhat stunted – a return to all-time highs will represent an extremely healthy 5x, but many crypto investors seek bigger gains.
Two crypto presale projects, both built on Ethereum, represent more room for growth given their excellent utility and low entry points.
Ethereum Alternative – Dash 2 Trade
Dash 2 Trade is a crypto intelligence platform that aims to help its users maximize profits by offering a range of tools and insights to help them make more well-informed decisions when trading or investing.
The project, in stage 3 of 9 in its presale, has already seen almost $6 million of investment in just two weeks since launching and is one of the fastest-growing cryptos in the space.
D2T tokens are currently on sale at $0.0513 but will rise to $0.0662 in the final stage of the presale – a guaranteed 29% increase before reaching any exchange or the wider public, where it is expected to increase in price more.
In contrast, ETH will need to return to $1,580 for a 29% increase, although many traders and analysts are predicting more losses in the coming days and weeks.
Dash 2 Trade will help investors and traders by granting them access to a dashboard – paid for in a monthly subscription of D2T tokens – that has a variety of data points, metrics, and tools.
The platform will send out crypto trading signals that highlight buying and selling opportunities and also track social media sentiment and analyze on-chain data and whale wallet activity to spot trends.
Traders can use pro-grade indicators, automated trading APIs, and a back-tester to optimize trading and test strategies in real time without risking capital.
There will also be social trading tools, members-only Discord groups, and trading competitions.
Investors can use a bespoke scoring system to find other new crypto presales, with Dash 2 Trade rating projects out of 100 based on various criteria such as utility, tokenomics, and the team.
Alerts highlighting new coin listings and exchange offerings will also be sent out.
Dash 2 Trade has been developed by the same team behind Learn2Trade, a forex and crypto trading platform for beginners that has 70,000 global users.
The team are doxxed and have been KYC-verified, while the token’s smart address has been audited.
There are 700 million tokens on sale during the presale, 70% of the max 1 billion supply, with no vesting period on presale tokens. A full guide on how to buy D2T token is available here.
Read our how-to-buy D2T token guide here.
Dash 2 Trade - New Gate.io Listing
- Also Listed on Bitmart, Changelly, LBank, Uniswap
- Collaborative Trading Platform Token
- Featured in Bitcoinist, Cointelegraph
- Solid Proof Audited, CoinSniper KYC Verified
- Trading Community of 70,000+ Members
Ethereum Alternative – IMPT
Another alternative investment to Ethereum with more potential for growth is IMPT, an eco-friendly protocol that aims to help fight the climate crisis and reduce global warming.
It will do that by offering carbon credits as fully tradeable NFTs and investors have been racing to buy into the presale, raising $12.5 million in less than a month.
Possession of a carbon credit allows its holder to emit greenhouse gas into the atmosphere by offsetting their carbon footprint, with funds directed to verified eco projects.
IMPT will allow users to buy or sell carbon credit NFTs on its marketplace, hold them as long-term investments, or even retire them – permanently taking them out of circulation in exchange for other NFTs.
By housing carbon credits on-chain, IMPT will also reduce fraud in the carbon market because of the blockchain is immutable and transparent.
IMPT is a high-potential crypto because the voluntary carbon market is expected to see exponential growth in the next decade, with Bloomberg estimating a rise from $2 billion to $100 billion annually by 2030.
As well as being tradeable, users can also earn IMPT tokens – which can be converted to carbon credits – while doing their usual shopping.
The protocol has affiliate partnerships with more than 10,000 brands, including Samsung and Microsoft, who will offer a percentage of the sale back as IMPT tokens.
Shoppers can, in turn, make greener choices by purchasing from retailers who offer a higher margin.
IMPT tokens are currently on sale for $0.023 and will rise to $0.028 – a guaranteed increase of 22% – in the third and final stage of the presale.
Interested investors can read our guide on how to buy IMPT.
The protocol is from a doxxed and public-facing team that have been KYC verified, while the token’s smart contract has also been audited.
The presale will see 60% of the max 3 billion tokens sold, with no vesting period.
IMPT - New Eco Friendly Crypto
- Carbon Offsetting Crypto & NFT Project
- Industry Partnerships, Public Team
- Listed on LBank, Uniswap
- Upcoming Listings - Bitmart Dec 28, Gate.io Jan 1st