The crypto market had a great performance in 2023, with cryptocurrencies like Ethereum and Bitcoin having bullish runs that attracted more traders and investors. This positive market sentiment is helping more investors anticipate more in this leap year as they ask themselves if Ethereum is a good investment option in 2024.
Ethereum remains the world’s second-largest cryptocurrency as it currently trades at about $2,370 with a market cap of over $280 billion. This is due to its potential as the pioneer of smart contracts and decentralized apps (dApps), which helps the wide use of the crypto asset.
Overview Of Ethereum’s Performance Since Its Launch And In 2023
Since the official launch of Ethereum in 2015, it has increased in value by millions per cent as it was traded at just $0.31 during its initial coin offering (ICO). Although this crypto asset has had its bullish and bearish runs in terms of its market value, it is noteworthy that any investor that stocked up ETH in 2017 would have over 482% at the time of writing this article.
However, investors who bought the ETH at the peak of the 2021 bull would have a decline by less than 65% at the current price. This is due to the steady drop in ETH price after hitting an all-time high of $4,891 in November 2021.
The price continued to fall along the wider crypto market margin in 2022 until it changed course to a better performance in 2023, with a year-high of $2,120 in April 2023. This gave Ethereum the leverage to attract more investors, even as it became one of the top promising cryptocurrencies in 2024.
Ethereum Price Prediction For 2024
A crypto bullish market is expected to occur in 2024, which will be attributed to the Bitcoin halving event in April and a possible improvement in economic factors that would increase trading. Therefore, ETH prices could record a new all-time high of $6,500 in 2024.
But if the global economic outlook is quite a rock in the year, an average ETH price could be around $4,500. In the event of a downturn in the global financial situation or delays in the approval of Ethereum ETF, it might record a dip in price to as low as $1,800.
Factors That Make Ethereum A Good Investment Option In 2024
1. The Availability Of Smart Contracts
Ethereum is widely popular for its smart contract capabilities, enabling developers to build unique dApps on the Ethereum network. This innovation helps to facilitate interoperability between applications as it allows emerging projects to leverage various benefits on the network – making it one of the top smart contract platforms.
Notable Ethereum-based protocols are Aave, Lido, Uniswap, and Maker. Also, Ethereum powers and secures many meme coins like Shiba Inu, Floki, and Pepe. Therefore, different applications on the Ethereum network often increase the demand for ETH – thereby increasing its value for investment.
2. The High Security Of Ethereum
Security plays a significant role in the increasing demand for ETH investment, as Ethereum is believed to be one of the most secure networks. Therefore, Aave and Lido, crypto lending and liquid staking platforms build on the Ethereum network to protect them from possible crypto hacks.
Ethereum provides security through encryption and hashing to protect data and private security keys on its network. Others include two-factor authentication and end-to-end encryption to protect the decentralized nature of Ethereum.
3. The Recent Ethereum Network Upgrade
The Merge, the recent upgrade to the Ethereum network as it moved from the proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), has given rise to a new economy on the network. This is because ETH holders can earn rewards from validating transactions and adding to the security of the Ethereum network.
In addition, the Merge has introduced sharding to the network, such that transaction data will be shared among the network to increase throughput and reduce loading congestion.
4. The Development Of Non-Fungible Tokens (NFTs) On Ethereum Network
The best NFTs are built on the Ethereum network – including Bored Ape Yacht Club and Crypto Punks. This has been pivotal to the number of transactions on the network, which helps in increasing the value of Ethereum. Therefore, the growing adoption of NFTs by mainstream companies spells a favorable future for cryptocurrency.
5. Decentralized Finance (DeFi) Protocols On Ethereum Network
Hundreds of DeFi platforms are built on the Ethereum blockchain – enabling token swapping, automated loans, yield farming, etc. These DeFi protocols attract more users through their low fees and minimal barriers to entry, which is the converse of traditional systems. So this, in turn, helps in the constant demand for Ethereum, which can potentially increase its value.
Frequently Asked Questions (FAQs) About Why Ethereum Is A Good Investment Option
Is Ethereum A Good Investment In 2024?
The viability of Ethereum as a good investment is relative, as every investment will have a subjective opinion about it. But, the constant development of Ethereum, with the addition of new features, might play a part in the steady increase in ETH value. It is also important to your research on the potential of Ethereum as an investment option.
Is Ethereum A Good Long-Term Or Short-Term Investment?
There is no perfect answer to this, as the future of the crypto market is uncertain because the sentiment of traders and investors largely drives it. However, avoiding a short-term investment in ETH might be a good idea as the Ethereum network can attract strong use cases that would, in turn, increase the ETH value. It is also important that you do your research.
Is It Worth Buying Ethereum Now In 2024?
At the time of writing this article, you can buy 1ETH at about $2,370 – an upward value from 2022 and the first half of 2023. Therefore, it is worth buying Ethereum now if you anticipate a high price rallying over time.
Is Ethereum A Safe Investment In 2024?
There is nothing like a safe investment, as everything has risks, including cryptocurrencies. However, there is a positive market sentiment around Ethereum as expert traders and investors believe in its growth in the coming years.
How High Will Ethereum Go In 2024?
There is no certainty of how high Ethereum will go in 2024, but some experts have predicted that ETH could rally to $5,000 by the end of 2024.
Conclusion
We can not overemphasize the relevance of Ethereum as it has become the foundational piece in the crypto industry. Its wide range of utilities keeps increasing its user base and market value. Hence making it an investment prospect in the crypto space.
However, it is important to study and understand the performance of Ethereum more before investing. Also, it should be noted that this article does not represent financial advice but is suggestive of the current performance of Ethereum.
