Cryptocurrency prices plummeted last year as traders fled the riskier investments. But despite that, the market capitalization of digital assets has increased to over $1 trillion from $800 billion at the commencement of 2021. This upturn has made it a great time to return to the crypto world, with many bargains still available. Therefore, let’s explore my top choice of cryptocurrency to purchase before summer.
A Leading Player
If you are looking for a reliable market leader, then you should consider Ethereum (ETH 203.92%). This is the second biggest digital asset in the world and it is a major player in the space of decentralized applications (dApps) and non-fungible tokens (NFTs).
Electric Capital’s annual developer report revealed that as of December, Ethereum had more than 5,700 monthly active developers – almost double that of its closest competitor, Polkadot. This shows that programmers are fond of the platform, which could keep users coming back for more dApps and NFTs. Plus, Ethereum is taking steps to get even better.
Last year, the blockchain underwent a major update called “the merge”. This changed the way that transactions are verified from proof of work to proof of stake. This was beneficial as it reduced energy usage by more than 99% and enabled investors to stake their holdings and generate passive income. It was also the first step in a plan to improve transaction speeds and reduce associated costs.
Scaling Up
Additionally, Ethereum is working to scale up, increase security, and create the best user experience. This is an excellent reason to buy Ethereum before summer, as the upgrades should push the asset towards being faster and cheaper. When users start noticing the difference, the crypto could go higher.
One of the upcoming advances is blob storage for rollup data. This is a cost-effective move as 90% of rollup transaction expenses are related to data storage. Blobs are cheap as they are not permanent. Ethereum plans to release this upgrade at some point this year, with the aim of reducing transaction fees to less than $0.001.
Another Reason to Buy
My second reason for buying Ethereum in the near future is that it has already gained 49% in 2021. This means that it has some momentum, and if the wider market continues to rise, Ethereum may be one of the first to benefit.
However, it is important to remember that crypto is still a risky industry, so it is wise to only invest what you can afford to lose. Nevertheless, digital assets can make a great addition to a diversified portfolio and Ethereum should be at the top of your list. Now is the perfect time to get involved, as prices are still low and the market is picking up.