In many ways, referring to Ethereum (ETH +3.11%) as only a "cryptocurrency" does it a major disservice. Ethereum is much more than that -- it is also a blockchain ecosystem and a global, decentralized computing platform used by both individuals and large organizations.
In short, a case can be made for Ethereum as the most useful cryptocurrency in existence. If you are looking for a defensive play to add to your portfolio during the current market downturn, look no further than Ethereum.
Ethereum is "programmable money"
One way to think about Ethereum is as "programmable money." Thanks to its pioneering use of smart contracts (self-executing pieces of computer code), Ethereum introduced investors to the world of decentralized finance (DeFi). Once Ethereum launched, it became possible to borrow, lend, and trade without the need for a financial intermediary.
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Today, Ethereum remains a DeFi powerhouse. It accounts for the majority (57%) of Total Value Locked (TVL) in the world. It has also become one of the most popular blockchains for trading on decentralized exchanges. And it has become the place to earn yield on digital assets.
No wonder, then, that some have referred to Ethereum as the preferred blockchain of Wall Street. When top banks and financial institutions want to launch new tokenized assets, they turn to Ethereum. When they are looking to implement new stablecoin initiatives, they turn to Ethereum.
Ethereum's utility for the individual investor
But it would be a mistake to think that Ethereum is only for the titans of Wall Street. There is also a strong consumer-facing side to Ethereum that has made it the most popular Layer 1 blockchain network in the world, with a very loyal blockchain developer base.
CRYPTO: ETH
Key Data Points
For example, the world of non-fungible tokens (NFTs) is dominated by Ethereum. While the idea of buying silly cartoon images of apes for tens of thousands of dollars has long faded from memory, there are plenty of other uses for NFTs that have been leveraged by artistic creators, including top musicians.
Best of all, new uses for the Ethereum blockchain are continually being found. According to Ethereum co-founder Vitalik Buterin, the next frontier is artificial intelligence. According to some analysts, autonomous AI agents will soon be coordinating and transacting among themselves, and they will be doing so using Ethereum's blockchain rails.
Why is Ethereum down 60%?
If that's the case, surely Ethereum should be skyrocketing in value now, right? Unfortunately, that's not the case. Ethereum is down 30% in 2026, and nearly 60% from its all-time high of $4,954 in August. Something clearly is amiss.
It's easy to blame it all on geopolitics or on macroeconomic uncertainty. But there might be a deeper reason at play. Based on the above analysis of Ethereum, doesn't it sound a lot like software?
And that's the problem. At one time, software was eating the world. Now, AI is eating software. As a result, investors are concerned that, in the age of AI, software is no longer as valuable as it once was. That has pushed down the price of software stocks and also helped to push down the price of Ethereum.
From my perspective, though, Ethereum's extraordinary utility continues to make it a strong play. For good reason, the White House has referred to Ethereum as a strategic asset. And, for good reason, Wall Street continues to embrace Ethereum. Add it all up, and Ethereum could be significantly undervalued right now.
