3 Reasons Why Ether Could Grow at Least 10 Times More in Value

The Ethereum blockchain network has created a tonne of potential for users and developers, making the Ether coin one of the most valuable you can own.

Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

Ever since cryptocurrencies began to rally significantly, Ether, the native currency of the Ethereum blockchain, has been a top performer. Investors who’d bought and held Ether over the last year have seen significant returns.

However, maybe even more important than the significant gains it’s achieved is the fact that Ether has been one of the most consistent long-term gainers in the cryptocurrency space.

There are other cryptocurrencies that have, at times, rallied faster than Ether, such as Dogecoin. However, often, these rallies aren’t sustained, as the cryptocurrencies at the heart of the rally can sometimes be quite speculative.

Ether is a cryptocurrency with a tonne of reasons to be bullish. Furthermore, there are many crypto investors and analysts who agree that Ether is one of the best investments you can make in the space.

So, if you’ve been thinking about buying Ether, here are three reasons why it could still be an incredible investment.

Ethereum’s smart contract capability gives it decades of growth potential

Having a blockchain network that can run smart contracts has been a gamechanger for blockchain technology.

New decentralized apps (dapps) are launching all the time. In addition, play-to-earn video games are becoming more popular, helping to drive the rise of NFTs.

New decentralized finance (DeFi) applications mean that investors can look for even more ways to grow their capital, which continues to draw new money into the industry.

And generally, if you want to participate in any of this, there’s a strong chance you’re going to need Ether to pay for transaction fees. This is what gives Ether so much potential and why it was already an incredible investment before considering the next two reasons.

Ethereum’s blockchain network is undergoing a significant improvement

Since Ether was already an excellent investment, the fact that it’s now addressing a number of its drawbacks is why the cryptocurrency is really intriguing today.

One of the biggest issues users of the Ethereum network have is the high gas fees it takes to execute transactions. Another issue is that, like Bitcoin, Ethereum currently runs on a proof-of-work model requiring miners to validate transactions, which can also be quite energy intensive.

So, with Ethereum looking to address these issues, it’s becoming a lot more appealing for users who are already in the crypto space as well as naturally helping to increase the popularity of the industry.

Ether is being burned as of August 2021

And while lowering gas fees and making the network are both crucial to Ethereum’s long-term potential, what will help Ether to gain in value rather significantly is that coins are now being burnt to lower the circulating supply.

Currently, almost one million Ether coins have already been burned. That’s almost $5 billion of Canadian dollars that’s been burned already, which, over the long run, should help Ether to grow in value significantly.

How to invest in Ether and the growing cryptocurrency sector

If you want to gain exposure to the growing cryptocurrency industry, and specifically Ether, one of the highest-potential cryptocurrencies in the space, there are a few options for investors to consider.

The first and the most straightforward investment would be to buy an ETF such as the CI Galaxy Ethereum ETF, which has a management fee of just 0.4% — well worth it for all the services that the ETF provides investors.

In addition to the ETF, you could also buy a cryptocurrency miner such as Hut 8 Mining or Hive Blockchain Technologies, two of the best in Canada. Another option would be to buy companies that are crypto platforms and apps, which allow users to buy cryptocurrencies and would benefit greatly, as the industry increases in popularity over the years.

Each investment offers investors significant opportunities for growth as the industry continues to grow and become more prominent in our everyday lives.

Ether is one of the most attractive assets to buy in the cryptocurrency space, but there are several attractive crypto stocks too. Just make sure to do a tonne of research and find an asset you’re happy to buy for the long haul. The potential rewards down the line will be well worth the time spent reading and researching today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Cryptocurrency

cryptocurrency, crypto, blockcahin

HIVE Blockchain Stock Fell 18% In October – Is It Time To Buy? 

Hive Blockchain (TSXV:HIVE) stock is down with the crypto market but ready for a BTC rebound.

Read more »

crypto, chart, stocks

2 Top Cryptocurrencies to Buy in October 2022

Ethereum and Solana are two of the most popular cryptocurrencies in the world that are well poised to deliver substantial…

Read more »

Hand arranging wood block stacking as step stair with arrow up.

2 Cryptocurrencies to Buy for Potential Recovery

The largest and most liquid cryptocurrencies may not always be the first to recover, and you may have to go…

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

Sinking Crypto Stock: Is Hut 8 (TSX:HUT) Worth Buying at $2.30?

A prominent crypto stock trading at an absurdly cheap price, but you must have a high-risk appetite to consider buying…

Read more »

sad concerned deep in thought

Is Coinbase Stock a Good Bet for Cryptocurrency Investors?

Coinbase stock is down 80% from all-time highs, but the U.S.-based cryptocurrency exchange is still one of the largest platforms…

Read more »

Big Bitcoin logo.

Will Bitcoin Ever Shift to a Proof-of-Stake Model?

Following Ethereum's (CRYPTO:ETH) Merge, will Bitcoin (CRYPTO:BTC) adopt a proof-of-stake consensus mechanism or stand pat?

Read more »

cryptocurrency, crypto, blockchain

HIVE Blockchain (TSXV:HIVE) Stock: Is it Cheap or a Falling Knife?

HIVE Blockchain Technologies Ltd. (TSXV:HIVE)(NASDAQ:HIVE) is a crypto miner that looks undervalued in the face of major volatility.

Read more »