Should you buy Ethereum? The recent drop to $1,800 could lead to large gains by the end of 2021

Ethereum is making preparations for another rally

Ethereum ETH/USD has dropped under $1,800 in June of 2021. The last time it traded below $1,800 was on March 29.

China broadened its crackdown on the massive cryptocurrency mining industry by banning mines in a key southwest province known as Sichuan, where they ordered the closure of 26 mines. This is impactful due to the fact that Chinese miners actually power around 70% of the global trade in cryptocurrencies. 

Ethereum offers a land of opportunities

Ethereum has played a major role in DeFi, where many decentralized applications (dApps) have taken advantage of its smart contract functionality.

This is done in an attempt to provide improved transaction mechanisms that tackle scaling, security and as of recently, have brought forward the popularity of yield farming.

As such, dApp offerings have diversified when it comes to their use-cases. The Ethereum blockchain has seen tremendous activity as a result, with a total of 159,793,975 distinct addresses, with a daily increase of 131,896 as of June 21. 

In other words, Ethereum is more than just a blockchain with its native cryptocurrency Ether that you can invest in.

Ethereum is an entire ecosystem, which is almost impossible to fail or drop to $0 in the long term. This makes it a worthwhile investment at any point in time, and more than ever as of now given the fact that it has dropped to a $1.800 value.

Should you buy Ethereum now?

As of June 22, the Value of Ethereum is at $1,799.

This is a significant drop from the value it had on May 12, where it peaked at $4,356, which was it’s all-time high.

However, while there are constant crackdowns of cryptocurrency mining farms in China, Ethereum relies on a lot more than just mining. Yield farms run on the Ethereum blockchain, a lot of real-world usage dApps also use the Ethereum blockchain and generate consistent value and use-cases to it.

In fact, Uniswap V3, which was introduced on March 23, processed 22.19K transactions within the last 24 hours (June 22) and had 13.94K users in total, with a volume of $645.38 million.

This prowess Ethereum has over the cryptocurrency industry as a whole will highly likely allow it to kick back in value by the end of 2021, potentially getting it over the $2,000 mark with ease.

At $1,799, Ethereum might be a worthwhile investment if you plan on holding it until the end of 2021 and beyond. 

Historically, it has always found a way to kick back up in value, mostly due to the fact that it is the go-to blockchain for many dApp developers. 

This is due to the fact that many dApps have kicked up in use-cases and value, increasing the appeal, popularity, and value of Ethereum in the process.

The post Should you buy Ethereum? The recent drop to $1,800 could lead to large gains by the end of 2021 appeared first on Invezz.

Publication date: 
06/22/2021 - 23:35

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.