The cryptocurrency scene has really boomed for the summer, with Bitcoin (CRYPTO:BTC) leading the way higher while newly-public crypto infrastructure firms attracted more capital from excited retail investors. Indeed, it’s a good time to be back in the blockchain trade, which may have legs for further gains going into the new year.
Beyond Bitcoin, Ethereum (CRYPTO:ETH) and Cardano (CRYPTO:ADA) are among the most intriguing of up-and-comers to play a sort of “catch-up” rally. Of course, it’s virtually impossible to catch up to Bitcoin, the crypto leader, but I do think that those seeking to further diversify their crypto portfolios may wish to explore the potential catalysts on the horizon with the likes of ETH and ADA.
The crypto market is getting hot again. And it’s not just about Bitcoin anymore.
As always, cryptocurrencies of all sorts are subject to profound levels of volatility. And while I do think the asset class is worthy of a small portion of a diversified portfolio, investors must be ready to ride out not only the heated crypto summers, but the horrendous crypto winters as well. Indeed, it’s been quite a while since we’ve had the last prolonged downturn in the crypto markets.
Either way, I do think that investing only what one’s comfortable parting with is the best course as the red-hot asset class surges while new investors look to punch their ticket to crypto and blockchain infrastructure plays’ IPOs on day one. Sure, there’s a lot of potential and upside, but with that comes a degree of risk that some may not be all too comfortable stomaching.
For those keen on picking up some more crypto while focusing on opportunities in the space that go well beyond Bitcoin, the big question is whether ETH or ADA is the better bet moving forward. It’s not an easy question to answer, but in this piece, we’ll have a closer look at which cryptocurrency looks more enticing for investors looking to build a position over the next 12-18 months.
Ethereum is gaining ground. Could a breakout moment be ahead?
It’s a good time to be a holder of Ethereum in recent months, with the crypto more than doubling (110% gain) in the last three months. Just 10% away from all-time highs, it certainly seems like there’s an opportunity to ride the crypto that may very well become the next big crypto in the eyes of corporate America and perhaps the rest of the world.
Of course, there’s a high degree of risk in chasing such a hot asset after a sudden surge. However, it’s tough to ignore the potential behind one of the most significant pillars of blockchain infrastructure. Whether we’re talking about growing regulatory confidence (think the GENIUS Act), new advances in DeFi (decentralized finance) and tokenization of assets, and, of course, sheer momentum, I think ETH has room to run from current levels.
In any case, I’d much rather step in after a confirmed breakout past resistance or after a sizeable pullback should such a breakout falter. Time will tell what happens to prices as the crypto approaches a major ceiling of resistance at just shy of $6,000. If the level can be breached, perhaps there’s room to roar.
Cardano looks intriguing, too
Cardano may be more appealing to risk-takers seeking greater upside or those looking for a relative value play. Of course, it’s tough to value cryptocurrencies, but given the lack of appreciation and the fact that prices are still down close to 70% from their all-time highs, it’s hard not to view ADA as a comeback play, especially as more light is shed on themes that could eventually cause the cryptocurrency to catch up with its bigger brothers.
Though government embrace and other industry-wide drivers could help fuel a comeback in ADA, I do think that ETH is a smarter bet for those looking for a more mature ecosystem as the next wave of crypto boom takes hold. I could be wrong, but I’d have to go with ETH, which is a relative blue chip, over the still-intriguing, but less-heated ADA, which is still down close to 10% on the year.
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