The race for global cryptocurrency supremacy is hardly a race at all. The top player when it comes to investing is Bitcoin, which is so big that its market capitalization is greater than the combined market caps of the next 10 crypto assets.
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However, this does not mean that Bitcoin is the only crypto worth investing in. Another name garnering a lot of attention recently is Ethereum, the No. 2 crypto with a price of around $4,333 and a market capitalization of around $523 billion.
Although these numbers don’t come close to Bitcoin – which is priced at $117,900 and has a market cap above $2.3 trillion – Ethereum still stands out due to its recent growth and potential as a winning investment. Here are some reasons why it’s worth a look.
Company’s investment is increasing
Much of Ethereum’s growth has been driven by corporate and institutional investors who don’t want to pay Bitcoin prices. Those companies include big players like Coinbase Global and lesser-known names like Bitmain Immersion Technologies and Sharplink Gaming.
Many investors are attracted to Ethereum because it allows them to expand into digital assets and the technology infrastructure behind decentralized finance (DeFi), which could make it a good investment.
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‘More utility than Bitcoin’
If you’re not familiar with buying and selling Ethereum, it is a decentralized, peer-to-peer network that enables the development of other cryptos. On it, developers can create and run applications, which are created using smart contracts when you buy cryptocurrency.
Ethereum is the market leader in the infrastructure that lets businesses and consumers transact between each other without a central bank. Ethereum and Bitcoin are both decentralized digital currencies.
“Ethereum allows anyone to… create their own token and thus their own community and basically encourage communities with economies of scale,” Ray Youssef, CEO of crypto marketplace Noone, told Yahoo Finance. “You could argue that it has more utility than Bitcoin.”
Should you invest in Ethereum?
This utility helps explain why Ethereum has been the center of attention among investors recently. After touching its 2025 low of $1,387 in early April, its price has surged more than 170%. Although Ethereum has still not returned to its all-time high in 2021, it recently reached its highest point in more than 3 1/2 years.
Experts say that the trend of Ethereum should remain high as more companies are interested in it. For example, digital asset platform Bit Digital recently announced that it had moved its entire treasury from Bitcoin to Ethereum.
“We believe Ethereum has the potential to rewrite the entire financial system,” Sam Taber, CEO of Bit Digital, said in a press release. “Bit Digital is aligning itself with the long-term potential of Ethereum and positioning itself as a focused Ethereum treasury platform in the public markets.”
legislative boost
Ethereum also got a boost from two new laws. The GENIUS Act, which focuses on regulations for stable coins, was signed into law by President Trump in mid-July. The Clarity Act, which provides a regulatory framework for digital assets, is currently moving through Congress.
The combination of these acts could create a kind of financial windfall for Ethereum’s future growth, thanks to its strong position in both stablecoins and DeFi.
Ultimately, there are some headwinds in Ethereum that could spell good news in the future, but investors should conduct due diligence, as well as consider their own risk tolerance and financial goals before deciding to invest.
Caitlin Moorehead contributed reporting to this article.
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This article originally appeared on GOBankingRates.com: Companies Are Buying Crypto That Isn’t Bitcoin – Should You Even Invest?
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