Ethereum is the most widely used Blockchain Stable and Defi Protocols Blockchain.
Institutional investment in Ethereum has increased in the last two months.
This can be one of the most successful cryptocurrencies over the next decade.
10 shares we like more than Ethereum ›
Ethereum(Crypto: Eth) It was recently best over the years, and in July and August. Announced a double -digit percentage return. It has also reached a new top of all time-and $ 5,000 on August 24, although the price has since increased.
Of course, many cryptocurrencies have been successful for a short time. Long -term winners are much less and further. For the first 10 years, you can consider Ethereum part of that group. Since its foundation 2015 It increased by more than 140,000% (September 2).
The Crypto Investors wonders whether Ethereum is still a good long -term investment. Although cryptocurrencies are always a risky offer, I think Ethereum is one of the stronger investment opportunities. That’s why.
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The biggest controversy between cryptocurrency believers and skeptics is the utility of cryptocurrencies and blockchain technology. Over the years, there have been a number of alleged cases, and the jury has still appeared due to some of them, such as non -contest tokens (NFTS).
However, there are currently several cases of use that should have strength. The first is Stablecoins, which is cryptocurrency for the value of other assets. The largest Stablecoins are linked from 1 to $ 1 to US dollar, and the entire Stablecoin market is worth more than $ 280 billion, and forecasts up to 2028. It can be worth $ 2 trillion.
Decentralized funding (Defi) with financial systems created on blockchain is another way people use cryptocurrencies. There are cryptocurrency saving protocols, loans and cryptocurrency chips that represent the real world property (RWAS), such as shares.
That is why it is useful for Ethereum: it is the most important Stablecoins and Defi Blockchain services. Ethereum is $ 150 billion worth of stablecoins, which means it makes up more than half of the whole market. It also has $ 90 billion in full value (TVL), almost 60% of TVL in all blockchains together.
The reason for Ethereum is that it was the first blockchain to execute intellectual contracts that are necessary to issue cryptocurrency tokens and create a blockchain protocols. This allowed him to create a large consumer and creator at the basic year before most of its competitors appeared.
One of the biggest causes of Ethereum has increased rapidly this summer is institutional adoption. Corporations have already bought market leader BitcoinBut at the end of June, the famous investment strategist Tom Lee became chairman Bitmin and posted plans to include Ethereum in the Treasury of his company. Finally, he wants Bitmin to keep 5% of the total supply of Ethereum.
This step began to increase companies buying Ethereum for cryptocurrency treasurers. Coingcko currently lists 11 state -owned companies led by Bitmino, with about $ 14 billion in Ethereum. So far, they have less than 3% of Ethereum supply. A little more than 7% of Bitcoin supplying is a Treasury of the companies, so Ethereum could see the constant investment of the companies.
In addition, increased interest in Ethereum received more fund (ETF) investment on the stock exchange. The Securities and Exchange Commission (SEC) approved the first Ethereum ETF 2024. July, but the early revenue was modest. This has changed in the last two months: July. The revenue was $ 5.4 billion and August. $ 3.9 billion. These two months make up most ETFs, which amounts to $ 13.5 billion (from August 29).
Ethereum is very pleased, but it also has a risk. Although it is currently the dominant blockchain, it faces strong competition. Solana is faster and has much lower transaction fees, which has helped reduce Ethereum market share. Trone is the main player of the Stablecoin Niche. It has $ 81 billion at Stablecoins, 29% of the total market, and is the most popular Blockchain payments in some regions of the world.
Ethereum is also very unstable and has experienced extended downs. If you had bought Ethereum at the last top in 2021. In November, you would not have been involved in your investment by the end of last month (and you would be today at today’s prices).
The risk is part of the cryptocurrency investment, but the reason to maintain your positions with small ones also. The success of Ethereum, as Stablecoins and Defi protocol platforms, accompanies the increasing popularity of institutional investors makes it a compelling investment. If you are looking for cryptocurrencies you could buy and store over the next 10 years, I think Ethereum and Bitcoin are two safest options.
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Lyle Daly has Bitcoin, Ethereum and Solana positions. Motley fool is a position and recommends Bitcoin, Ethereum and Solana. The Motley fool has a disclosure policy.
Ethereum: Could it be a long -term winner? initially released by The Motley Fool
