Ethereum (ETH -2.73%) has been booming lately, with its price up roughly 53% over the past month. In the midst of a tough crypto winter, this surge has been a promising moment for many investors.
Whether you've been on the fence about crypto or are considering investing more heavily in Ethereum, is now the right time to buy? Or should you hold off? There are advantages and disadvantages to both options.
1. The buy case: Ethereum is quickly gaining market share
Bitcoin has always been the biggest name in the sector, and Ethereum has consistently held second place behind the crypto giant. However, that could change soon.
Ethereum has been gaining traction in terms of market share, quickly catching up to Bitcoin. While Bitcoin's market cap still looms far above Ethereum, the gap has narrowed considerably over the past year.
Ethereum's infrastructure could also help set it up for long-term growth. It's the leading network for decentralized applications, such as non-fungible token (NFT) marketplaces and decentralized finance (DeFi) projects. The sky is the limit in terms of its potential, and the more developers build on the blockchain, the better chance Ethereum has of sticking around for the long haul.
2. The buy case: Its update could make it a stronger investment
Ethereum's next update, "The Merge," is tentatively slated for this September, and it's an exciting moment for investors.
This upgrade will move Ethereum from a proof of work (PoW) mining protocol to proof of stake (PoS), making the network significantly faster, cheaper for users, and far more energy efficient. In turn, this should make it easier for Ethereum to scale, setting it up for long-term growth.
Ethereum is already one of the strongest players in the crypto space, and if this update goes as planned, the future looks even more promising for the network. That could make right now a fantastic time to invest.
1. Reason to wait: Ethereum is still speculative right now
Despite its many advantages, Ethereum -- and cryptocurrency in general -- is still a speculative investment. Nobody knows for certain whether it will succeed over the long term, which means it carries a higher level of risk.
If you're a risk-averse investor, you may consider waiting to see whether Ethereum takes off. You won't earn as much overall if you wait until it's already successful to invest, but you're also less likely to lose money.
If you're on the fence, consider your priorities when investing. Are you most concerned about losing money or missing out on opportunities? If losing money is your biggest concern, it may be best to avoid crypto. But if you're comfortable with the potential of losing money if it means having a chance at earning lucrative returns, you may consider investing now.
Nobody can say exactly how Ethereum will perform over time, but it is one of the most promising cryptocurrencies at the moment. If you're willing to take on higher risk for the potential to earn substantial rewards, Ethereum may be the right investment for you.
