Placing ETH inside of your IRA retirement account might be the ultimate move as an investor.
Ethereum has been one of the most exciting assets in the world since its inception in 2015. It not only invented true decentralized Smart Contracts through the Ethereum Virtual Machine, but it has steadily outperformed Bitcoin by huge margins.

 

Ethereum All-Time High

Ethereum hitting all time high

Today, January 19, 2021, marks the day that Ethereum has breached its previous all-time high price of $1,420 which was reached in 2017. This is largely part due to Ethereum having the largest blockchain development community in the world. This community has continued to deliver groundbreaking innovations such as Initial Coin Offerings, Tokenized Assets, Digitally Scarce Art, Decentralized Finance, and much more. Many of the Ethereum community members have highlighted that they are only just getting started and Ethereum 2.0 might bring an entirely new Ethereum Hype Cycle of innovation.

 

Cold Hard Facts, Ethereum is Dominating

One of the best tools a crypto investor can use is on-chain data. This is information that is pulled directly from the blockchain itself, providing irrefutable evidence of something. We have pulled together a few resources, using on-chain data that will help show that Ethereum’s recent all-time high might just be the beginning of a monstrous future.

1. Real Use – Real Revenue

Ethereum earned fees from users

Ethereum continues to dominate the entire crypto space in terms of users and fees paid — proving it’s the most useful network in the world. While many inexperienced users and investors have complained about high costs, it’s simply due to Ethereum being where all the action is. The laws of supply and demand will always hold true. The Ethereum community has been focusing on Layer 2 and recently launched Optimism, which will allow users to transact instantly and with zero fees, while still maintaining the security of Layer 1 Ethereum. 

 

2.  High Hash Rate – Tremendous Security

Ethereum hash rate which continues to grow

Ethereum Hash Rate is at an all-time high, which shows that miners have never been more confident. This growing hash rate and the higher revenue (as shown in #1) provides an economic incentive to continue to secure the blockchain itself. Ethereum is arguably the most secure blockchain in the world and that security will only increase, as Ethereum moves towards Proof of Stake in the future.

 

3. Active Users – Actual Economic Activity

chart showing users of Ethereum is growing

Ethereum has more than half a million daily active addresses, which has doubled YTD and now sits comfortably at an all-time high. This feels very similar to the explosive growth of the internet and internet stocks throughout history, which price very closely mirrored increased user growth. It appears Ethereum is simply repeating history, as shown in Google, Internet Stocks and Ethereum

 

4. Decentralized Finance – The New Open Financial System

Decentralized finance total value locked reaching all time high

Those who are paying attention can see that Decentralized Finance is the plumbing for the new financial system. Also known as DeFi, all of these exciting innovations are built on Ethereum. This year the Total Value Locked (TVL) went from a world record of 1 Billion and now sits at over 25 Billion across more than 21 different projects. This is a clear sign that the industry is not only maturing, but has starting to have enough liquidity for large global institutions to interact with. 

 

5. Stable Coins – Built on Ethereum

Stablecoins growing tremendously on Ethereum

While the industry is starting to catch onto the discussion of Stable Coins and CBDC’s, the Ethereum community has already been having those conversations for years. Essentially all of the global supply of Stable Coins live on Ethereum, which accounts for almost $22 billion, an increase of more than $20B in the past year. It was even recently announced that multiple governments are working with Ethereum to build their CBDC’s and even Visa will be using Ethereum as part of its new infrastructure. 

 

6. Decentralized Exchanges – The Future of Trading

Decentralized exchanges are having parabolic growth

Decentralized Exchanges (DEX) have taken the world by storm. They allow anyone to swap between coins with no centralized middle man, no permission and no ability to be stopped. This is a similar “zero to one” innovation as Bitcoin with censorship-resistant money. Monthly DEX volume exceeds more than 30 Billion per month, which is over a 50x increase since the beginning of the year. Many Decentralized Exchanges are already doing more daily trading volume than Centralized Exchanges, one example being Uniswap doing more volume than Coinbase.

 

7. Ethereum 2.0The Global Settlement Layer

Ethereum locked in staking contract for ETH 2

This chart shows the amount of ETH that is currently locked up in ETH 2. Ethereum 2.0 is the next generation of Ethereum, which is the most decentralized blockchain developed in history. It touts more than 7 software implementations, which is groundbreaking. For comparison, Bitcoin, Ripple, Litecoin, EOS, Stellar, and almost all other blockchains only have 1 software implementation. Most investors have yet to realize that Ethereum is truly on a different playing field and dare we say a different universe entirely. So far about 3 million ETH has been sent to the ETH 2 deposit contract, which is a huge sign that confidence in Ethereum’s next-generation upgrade is high. Ethereum 2.0 will also bring Proof of Stake yield for investors, this is passive cash flow that every investor is looking for. Many consider ETH to actually be The Internet Bond, which institutions will certainly get FOMO over.

 

Ethereum in your IRA, The Ultimate Asset

When you look at the above information and look towards the future, it might be the case that Ethereum is the ultimate IRA asset. We make it our mission to allow investors to access the highest quality Digital Assets inside of their IRA’s. If you want to learn more, please read How it Works or Get Started.