Ethereum Remains the Pick of the Crypto Investments this Year


ETH-USD is the best bet in the current volatile macro-environment

This year's crypto market is off to a terrible start. Several reasons have slowed the market's performance, prompting investors to seek out safer investments. However, for cryptos like Ethereum (ETH-USD), the long-term investment rationale remains the same. The ETH-USD pair is perhaps the best crypto investment, with a long number of applications.

The agreement among financial experts was that cryptocurrency may pose a threat to traditional assets. In the last couple of years, crypto use has increased by over 100 percent, and if this trend continues, there might be over a billion crypto users. Furthermore, institutional investment in the sector is increasing at a healthy rate, boosting the industry's market value by billions.

Ethereum is in a strong position to benefit from the sector's significant expansion in the next years. It has the security and decentralization to support a variety of new services, including Web 3.0 and DeFi. The best risk/reward possibility in the sector is ETH-USD, which is an intriguing crypto bet for the long term.

Crypto Narratives

Ethereum provides the finest opportunity for investors to profit from the expansion of some of the most lucrative crypto sectors. For the foreseeable future, three primary areas will drive the growth of crypto investments.

First, there's Web 3.0. Unlike its predecessors, Web 3.0 allows you to produce your own content, own it, and profit from it in perpetuity. It essentially decentralizes the internet's centralized approach, making it more democratic for its users. Cryptocurrencies enable a closer relationship between creators and their work.

Non-fungible tokens are another area that the Web 3.0 concept has spawned (NFTs). NFTs can indicate ownership of a certain item on a blockchain and can be anything from art to video images to collectibles and other items.

Last year, the NFT market grew from $340 million in 2020 to over $13 billion. Ethereum now rules this field and is the best option to profit from the market's explosive expansion.

Then there are smart contracts and decentralized finance, which have the potential to transform financial markets. Smart contracts efficiently eliminate the middleman, allowing them to operate much more quickly than traditional transactions.

Everything is laid out clearly in the code, which eliminates the need for third parties and streamlines the process. The money generated by the DeFi protocol is over $5 billion, but it might be worth 100 times more in the next five years.

Ethereum has had a hard time keeping up with the massive demand from consumers. It has been making necessary changes to its network as part of a multiphase upgrade in response to its large user base.

The Beacon chain upgrade recently went live, allowing users to use a proof-of-stake (PoS) technique to verify transactions. Transactions can be validated more cost-effectively and efficiently by staking their holdings.

Next year, there will be a handful additional upgrades. The first of these modifications is sharding, which significantly improves the scalability of Ethereum's network.

The installation of new nodes to the platform could allow thousands of transactions per second to be processed. Furthermore, the third phase will enhance the sharding chains' functionality for dynamic communication.

As a result of these planned developments, Ethereum may be able to further consolidate its position in the market. It is currently the finest crypto investment with the highest upside potential for this year.

It also boasts an unrivaled list of use-cases, confirming its status as an industry leader. It will take a long time for its competitors to catch up to it, and its most recent improvements will further strengthen its position. As a result, if you only buy in one cryptocurrency this year, make it Ether.


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