Here's Why I'm Buying Ethereum Right Now
Key Points
Ethereum is currently trading at a 50% discount to its all-time high from last summer.
Ethereum remains the DeFi leader, and no other blockchain even comes close.
After a blistering hot August, investor inflows are returning to the Ethereum ETFs.
- 10 stocks we like better than Ethereum ›
Ethereum (CRYPTO: ETH) currently trades at a price of just $2,500. That's exactly 50% below where it was trading last August, when it hit a new all-time high of $4,954.
That leads me to believe that Ethereum could be extremely undervalued right now. If you're looking for a cryptocurrency to buy at a steep discount, look no further than Ethereum.
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The return of ETF inflows
Most importantly, ETF inflows are returning. That's a positive sign, and more proof that institutional investors are starting to move their money back into Ethereum again after a long hiatus. In August, for example, more than $1.8 billion flowed into Ethereum ETFs. That's the best single month since August 2025.
Image source: Getty Images.
Starting in mid-August, when top crypto executives met at the White House, Ethereum has been on an absolute heater. It's up more than 30% in a matter of weeks. So it's perhaps no surprise that there has been a sudden influx of new money into the spot Ethereum ETFs.
Ethereum's DeFi dominance
Despite the rise of so many Layer 1 blockchain rivals, Ethereum remains far and away the leader in decentralized finance (DeFi). This is important because many of the hottest trends in the crypto and blockchain sector -- such as stablecoins and real-world asset (RWA) tokenization -- are based on DeFi. As long as Ethereum remains the market leader in DeFi, it will benefit from growth in these areas.
According to the latest data from DeFi information site DefiLlama, Ethereum still accounts for a whopping 56% of total value locked (TVL) in the DeFi world. No other blockchain even comes close. Solana, for example, ranks second with a paltry 7% market share.
Moreover, two of the hottest Layer 2 blockchains right now -- Base from Coinbase Global and Robinhood Chain from Robinhood Markets -- are actually built on top of Ethereum's core blockchain. So I don't buy into the argument that these new blockchains have somehow "passed" Ethereum. If anything, they are piggybacking on Ethereum.
How much higher can Ethereum go?
The growing consensus is that Ethereum's upside from here might be as high as $10,000. And some investors -- such as Tom Lee of Ethereum treasury company Bitmine Immersion Technologies -- think the upside could be as high as $250,000.
If the current crypto rally holds, Ethereum could easily be on a path to regain its all-time high from last summer. If you're looking for a cryptocurrency with the potential to double in value within the next 12 months, Ethereum could be worth a closer look.
Should you buy stock in Ethereum right now?
Before you buy stock in Ethereum, consider this:
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Dominic Basulto has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum and Solana. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
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