What’s wrong with Ethereum standing at $3400 this morning?
Nothing, according to many ETH buy and holders, and even some enterprising day traders looking to profit from short-term increases in Ether activity.
However, others are more circumspect about recent price action, because as Yashu Gola at Cointelegraph reports, the Ethereum/Bitcoin trade rate has “plunged.”
“Ethereum’s native token Ether (ETH) rallied by more than 15% in the first twelve days of October,” Gola writes. “But, compared to Bitcoin’s (BTC) 30% gains in the same period, the second-largest cryptocurrency is currently in a downtrend when priced in BTC. So far into October (and the fourth quarter of 2021), the ETH/BTC exchange rate has plunged by over 12%, reaching 0.060215 BTC for the first time in more than two months on Tuesday.”
This 12% drop gives some analysts cause for concern.
However, Ethereum is still the favored coin for many artists and non-fungible token (NFT) creators, because of its smart contract handling capabilities.
“As NFTs are essentially deeds, one day you could buy a car or home using ETH and receive the deed as an NFT in return (in the same transaction),” writes an inside unnamed author at Ethereum.org. “As things become increasingly high-tech, it’s not hard to imagine a world where your Ethereum wallet becomes the key to your car or home – your door being unlocked by the cryptographic proof of ownership. With valuable assets like cars and property representable on Ethereum, you can use NFTs as collateral in decentralized loans.”
With these kinds of ideas in play, it’s not difficult to see the long-term potential for Ethereum to become a leading, if not the leading, cryptocurrency.
So which do you invest in? Bitcoin or Ethereum?
One thing to keep in mind is that while a unit of ETH is worth around $3400, a Bitcoin is worth somewhere in the neighborhood of $52,000 to $57,000 depending on recent price activity.
That leads some analysts to suggest that Bitcoin is overbought or overvalued.
ETH and LTC, on the other hand are still being discovered. Think about that in terms of your portfolio strategy.