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Ethereum: The Silver Bullet That Could Outshine Bitcoin in 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

There’s no denying it. Bitcoin (BTC-USD) is the ultimate “blue-chip” cryptocurrency. It’s like gold — but if that’s true, then Ethereum (ETH-USD) is like silver. That’s a huge compliment to Ethereum, and if you’re seeking huge crypto-market gains this year, your best bet is ETH stock.

Now, you might be thinking that Ethereum plays second fiddle to the much more popular Bitcoin. It’s just a runner-up in terms of market capitalization, so why should anyone take Ethereum seriously?

Yet, just remember that smaller assets can make bigger moves. When you consider how useful Ethereum is, especially when compared to Bitcoin, you’ll surely reconsider your cryptocurrency-investment strategy.

Ethereum Is the ‘Silver Bullet’ for Crypto Investors

Crypto traders really should think about the analogy between Ethereum and Bitcoin. They’re like silver and gold, as gold is more popular but silver has more uses (for solar panels, electric vehicle batteries, etc.).

Similarly, Ethereum has use cases that Bitcoin just doesn’t have, or at least not to the same extent. Blockchain developers are acutely aware of this.

When developers/coders are looking to create smart contracts, decentralized finance protocols, non-fungible tokens or a platform for blockchain-based gaming, they’ll probably build these things on the Ethereum blockchain.

Thus, in-the-know blockchain participants appreciate Ethereum’s utility even if many retail investors don’t. Ethereum is indispensable in the current blockchain ecosystem, much like silver is essential in the 2020s.

Ethereum Hasn’t Had Its Watershed Moment Yet

As you’re probably aware, the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds earlier this year. This event precipitated a huge rally in Bitcoin, and ETF stock followed Bitcoin higher.

Don’t think of Ethereum as just a tag-along, though. Just like silver tends to magnify the price moves of gold, Ethereum is lower-priced and consequently can move faster than Bitcoin does.

Besides, Bitcoin already had its watershed moment in 2024. Ethereum should be next in line, as the SEC hasn’t yet approved a spot Ethereum ETF. It’s probably just a matter of time before this happens, though it’s difficult to predict the timing.

BlackRock (NYSE:BLK), Grayscale and other firms have already submitted applications to the SEC for spot Ethereum ETFs. Granted, the SEC is dragging its feet in deciding on these Ethereum ETFs.

But then, the SEC also took its sweet time when deciding on the currently approved spot Bitcoin ETFs. Besides, it’s certainly not unusual for the gears of government to turn slowly. So, just be patient.

Don’t Ask ‘When.’ Just HODL ETH Stock.

If Ethereum is basically silver to Bitcoin’s gold, then expect ETH stock to make a magnified move in the coming months. Instead of trying to time your entry perfectly, just HODL: Hold On for Dear Life with a position in Ethereum.

This doesn’t mean you can’t also own Bitcoin. Just keep an open mind, as Ethereum’s utility makes it just as important as Bitcoin in the cryptocurrency ecosystem. Hence, for best results in 2024, feel free to add some Ethereum to your crypto portfolio.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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The post Ethereum: The Silver Bullet That Could Outshine Bitcoin in 2024 appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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