What if I Invest $100 in Ethereum Today, What Might Happen?

2025.09.02 2025.09.02
What if I Invest $100 in Ethereum Today?

Oleg Tkachenkohttps://www.litefinance.org/blog/authors/oleg-tkachenko/

The Ethereum network is the leading platform for developing decentralized applications (dApps). It ranks first in terms of total value locked (TVL), surpassing TRON and Solana ecosystems. Ethereum is traditionally second only to Bitcoin in terms of market capitalization. Despite the ecosystem’s widespread adoption and development, high fees remain a significant issue for the network, particularly during peak trading hours.

Despite periods of significant growth in the crypto market, Ethereum’s price performance does not always outpace Bitcoin. These fluctuations raise questions among investors: why is one of the most influential cryptocurrencies showing deeper corrections than the broader crypto market? How promising are long-term investments in Ethereum, and does the project justify its status? This review will provide the answers to these and other important questions about Ethereum.

Major Takeaways

• Ethereum is the largest blockchain network for developing decentralized applications and smart contracts. In terms of the number of startups deployed on the network, it surpasses its main competitors, Solana and TRON. It ranks second in terms of market cap after Bitcoin.
• The migration to the PoS algorithm in 2022 reduced the network’s total energy consumption by 99% and offered users additional income from staking.
• Ethereum outperforms its competitors due to its exceptional Total Value Locked (TVL) and the highest number of active developers. Although the network lags behind its competitors in terms of parameters, it retains the trust of users.
• Scalability, which is partially solved by deploying L1 and L2 solutions, and high network fees remain among Ethereum’s major problems.
• As for Ethereum’s past performance, the coin reached its all-time high of $4951.66 on 24.08.2025.
• An analysis of the ETH price over the past few years shows that Ethereum lags significantly behind other leading cryptocurrencies in terms of growth rates. While Bitcoin, Solana, and TRON managed to recover, Ethereum demonstrates much more modest performance. Moreover, during periods of market stagnation or correction, ETH often appears as the top loser in terms of drawdown depth among the top 20 coins by market capitalization.
• The 5-year price forecast for Ethereum is rather optimistic. Despite the existing challenges, competing networks have not yet claimed clear leadership in the segment.

What Makes Ethereum Valuable?

Ethereum (ETH) is a blockchain-based network for developing decentralized applications. It was created as a single decentralized virtual machine. Developers can deploy any application within the network, including oracles, gaming startups, and decentralized finance (DeFi) platforms.

Ethereum has several competitors, including BNB Chain (BNB), Solana (SOL), Cardano (ADA), TRON (TRX), and Avalanche (AVAX), among others. The primary competitive factors include transaction processing speed, network throughput, intra-network fees, network stability, and compatibility with other blockchains.

Strengths of the Ethereum blockchain technology:

• Proof-of-Stake (PoS) consensus algorithm. The network transitioned to this algorithm in September 2022. In theory, this solution should help improve energy efficiency and scalability. In reality, network scalability issues have not yet been fully resolved.
• Scalability and Layer 2 solutions. To increase throughput, Ethereum supports a variety of Layer 2 protocols (Optimistic Rollups, ZK-Rollups). In simple terms, developers have more opportunities to launch compatible startups with high transaction speeds.
• Staking. This opportunity appeared after the transition to the PoS algorithm. Staking is an additional source of income for long-term investors, similar to a bank deposit.
• Network stability and security. One of Ethereum’s main rivals, the Solana network, experiences relatively frequent failures. Therefore, users tend to disregard Ethereum’s drawbacks in favor of network stability.

However, Ethereum still faces certain obstacles. Updates aimed at resolving scalability issues continue to be delayed. Regarding the regulatory environment, it is now clear that spot ETH ETFs have been approved and are being traded; however, questions about future incentives continue to be a topic of discussion.

Is Ethereum a Good Investment Today?

Here are ETH’s up-to-date statistics:

A long-term investment strategy in Ethereum can be a viable option.

However, the platform encounters the following problems:

• Unsuccessful testing phases led to the postponement of planned updates. As a result, investors doubt the likelihood of a quick solution to the network’s scalability issues.
• New competitors have entered the market. Ethereum can process 15 transactions per second, while Solana can process 65,000 transactions per second. In mid-2023, the Sui platform was introduced, capable of processing nearly 300,000 transactions per second. Ethereum, a trailblazer in this field, is beginning to face competition from younger and more advanced alternatives.
• In early 2025, Galaxy Digital and other funds experienced significant sales of ETH, resulting in a precipitous drawdown. However, an accumulation phase began, including inflows into ETH ETFs. It is likely that institutional investors and major players deliberately reduced the price during the period of stagnation to acquire the asset at a lower rate.
• Despite the SEC’s adoption of a more tolerant stance and its initiatives towards transparency, including the formal acknowledgment of liquid staking as a security, no Ethereum ETF with staking has been approved to date.

According to analysts, the correction observed in the first half of 2025 was expected — the market continues to evolve cyclically. If fundamental factors and institutional appetite remain unchanged, a new wave of growth is possible within 6 to 12 months. Even if ETH reaches a new all-time high, it may then slide to the $3,000–$3,500 range.

There are various scenarios: in the event of a deeper correction, a pullback to the $1,500–1,700 support zones is possible. If the market reverses earlier, a reasonable strategy would be to buy after a breakout of the $2,000 level and hold Ethereum until it reaches targets in the $3,000–3,500 range. In this case, the return on investments in Ethereum could exceed 50–60% in a year.

Understanding Ethereum’s Price History and Volatility

The Ethereum ICO was held in 2014, and the network began full operation in 2015. At that time, the cost of ETH was around $0.30–$0.80. In 2016, the network faced the largest hack at that time, resulting in a loss of approximately $60 million. At that point, a dispute arose: what should be done? Should the Ethereum blockchain be rolled back, or should it remain as it is? As a result of the hard fork, two networks emerged:

• Ethereum – a platform that allows previous transactions to be changed and corrected.
• Ethereum Classic – the original Ethereum network, which excludes changes. Users cannot change transactions in the blockchain registry.

In January 2018, the coin reached its first significant historical high of over $1,100 amid the cryptocurrency boom, which quickly ended with a market crash. ETH then plummeted to $80 by the end of 2018.

Over the following two years, the ETH crypto gradually recovered. By the end of 2020, the coin was worth more than $750, posting a tenfold gain in just two years, making Ethereum a good investment. Any other traditional currency can hardly boast such skyrocketing growth.

In 2021, the cryptocurrency market experienced a golden period, with Ethereum reaching a new all-time high of over $4,800. In 2022, another market downturn occurred, but the ETH price managed to remain above $1,000.

A significant boost for the cryptocurrency market, which was recovering after the Terra (LUNA) startup crash and the FTX exchange bankruptcy in 2022, was the SEC’s approval of spot BTC ETFs in January 2024. Although the market was already gradually recovering by that time.

Here, I would like to say a few words about volatility.

Let’s consider two scenarios: you invested $100 in Ethereum on January 1, 2023, when the market was still at its lowest point. On January 1, 2024, when the market had already begun to recover, the peak growth was still ahead. In both cases, you managed to withdraw your money at the peak—for BTC, the ATH was in January 2025. We will use it as the primary reference coin. Let’s say you sold your coins on January 1, 2025. For comparison, let’s take its main competitor, Solana, its equally strong competitor, TRON, meme token Doge, and BTC.

Return on investment in % assuming coins are sold on January 1, 2025:

Compared to BTC, its main competitors, and meme coins, Ethereum loses in terms of ROI completely, and the date of purchase does not matter.

In 2025, the cryptocurrency market saw significant shifts against Donald Trump’s political agenda, trade wars, and frequent changes in negative and positive news. This caused extreme volatility, dragging the broader market down. Let’s consider the second scenario: you sold coins on April 23, 2025. Let’s also add one column with a $100 invested in Ethereum on January 1, 2025, at the market’s peak, which is a common mistake among beginners:

The overall situation remains unchanged. The significant disparity in annual returns between BTC and ETH when purchased on January 1, 2025, can be attributed to the absence of a robust correlation. BTC reached its peak in late January 2025, while ETH peaked in September 2024. However, the general trend remains consistent — ETH becomes more affordable during periods of market weakness, similar to weaker altcoins.

Despite its market position and popularity, ETH exhibits volatility more typical of second-tier altcoins. High volatility can present opportunities for short-term speculative gains. On the other hand, there is a risk that the coin’s price could reverse at any moment.

What would be the result of a small investment of $100 in Ethereum today? The answer depends on the time of year when you read this review. Therefore, it is impossible to give a short-term forecast. The long-term Ethereum price prediction indicates a moderate growth trajectory, with slower growth compared to the leading cryptocurrencies.

Is $100 Enough to Invest in Ethereum?

The yield of Ethereum at different time periods is shown in the previous block. Over the course of a year, the coin can bring in more than 50% profit, but it can also lose half its value in a few months. If you invested $100 in Ethereum, you could earn $50 in a year or lose the same amount.

Is an investment of $100 in Ethereum enough? It depends on the investment horizon:

• For short-term speculation, it is more than enough if you use leverage.
• For long-term investments of 1-3 years, the potential earnings are approximately $100–$150 in a favorable scenario, with the risk of losing at least half in an unfavorable scenario, which makes it a questionable option.

Today, Ethereum remains a highly volatile asset: sharp price swings make it an attractive instrument for short-term trading. In the long term, growth is also possible, but it is likely to be more modest than that of its competitors.

Recently, ETH has been showing signs of a steady recovery; however, it may be significantly cheaper today. For comparison, stock indices currently yield 10–15% a year, while stocks yield 20–30%. Ethereum’s potential for a return of 50% or more per year is appealing, but it is only attainable with a successful entry point and favorable market conditions. The minimum investment threshold recommended is set at $1,000.

How to Invest $100 in Ethereum: Investment Methods 

There are several options: become the direct owner of the coins or earn on the price difference without owning ETH. The first option offers two alternatives: purchasing on an exchange and then storing the coins, for example, in staking, or storing the coins in a cold wallet.

1. Direct Ethereum Purchase 

Possible options:

• Purchase on a centralized exchange. The simplest and most reliable option. Exchanges such as Binance, Bybit, and Coinbase are licensed companies.

Register, complete verification, and purchase ETH in any convenient way. You can pay for your purchase directly with Visa/Mastercard, e-wallets, stablecoins, P2P services, etc. This is a convenient option for short-term investment decisions and speculative cryptocurrency trading.

Coins can be stored on your account on the exchange platform. However, crypto exchanges are not immune to attacks from hackers. You can send coins to staking/farming and earn extra on them, or put them into a cold wallet.

• Buy coins on decentralized (DEX) exchanges. These exchanges do not require verification, but they also do not offer accounts for storing coins. They are only used for buying and selling crypto assets, so you will need a crypto wallet for this purpose.

• Exchange services. You can exchange any currency or cryptocurrency for Ethereum. However, you should have a registered wallet to which the transfer will be made. However, there are numerous fraudulent platforms. Sometimes, exchange services charge high fees. You can find relatively proven exchange services on the Bestchange aggregator website.

• Crypto ATMs. Similar to a bank ATM, these are physical devices located on the street where you can purchase ETH with cash. However, in this case, you should have a wallet created in advance to receive the coins.
• Purchase through wallets that support ETH transactions. For example, MetaMask and Trust Wallet are convenient for long-term investment.

When choosing, consider your short- or long-term goals, total commission, level of anonymity, convenience of the purchase, and convenience of coin storage. In some countries, financial regulators may restrict bank card transactions, and crypto ATMs can save the day.

2. CFD Trading

Unlike the previous method, CFD trading does not mean that you become the owner of ETH, but you can earn from the price difference. This can only be done after registering with a CFD broker. You can try your hand at the LiteFinance demo account after quick registration. Verification and account replenishment are not required.

How to trade CFDs using the LiteFinance broker as an example:

• On the main page, click Register. Fill out a short registration form, after which you will get access to your Client Profile and the web trading platform.
• In the left vertical panel, select Trade. In the horizontal menu, select the Cryptocurrencies section.

You can open a trade directly from the main panel by specifying the position size and clicking a Buy or Sell button, or you can go to the “Info on the instrument” section to get extended access to analysis tools and trade parameters.

Here you can view the price movement on different time frames, use charting tools, and technical indicators right on the chart. In the trade management block, you can set stop-loss and take-profit orders. There are three options available, which MT4 does not have.

Advantages of CFD trading:

• Simple registration and verification.
• Leverage. Cryptocurrency exchanges only offer leverage on futures, which carry high risks due to the derivative nature of this instrument.
• Lower risks compared to long-term storage of coins in a wallet, as the seed phrase—the password to a cold wallet —can be lost. Moreover, this password is a prime target for fraudsters.

This option is suitable for short-term trading but not for long-term investing, as it incurs swap costs—fees for rolling over a position to the next day.

3. Ethereum ETFs and Alternative Investment Methods 

Spot Ethereum ETFs were approved by the SEC in May 2024. A spot ETF is a fund whose asset value is tied to the value of ETH. You are not buying cryptocurrency, but rather the security of a fund that, in turn, buys Ethereum.

Advantages of spot ETH compared to direct purchase:

• ETFs have more transparent rules and are more compliant with legislation. The status of cryptocurrencies at the legislative level has not been fully defined. Private investors have questions related to taxes, such as confirming the Source of Funds when selling cryptocurrencies.
• ETFs simplify reporting to tax authorities, as the broker provides ready-made documents. When purchasing Ethereum directly, you have to calculate profits and losses yourself and fill out a tax return.
• ETH ETFs are traded on regulated stock exchanges and are subject to oversight by regulatory bodies such as the SEC. This approach mitigates the risks of fraud and manipulation that are prevalent in crypto exchanges with inadequate regulatory oversight.
• Less responsibility. Investing in exchange-traded funds involves purchasing an asset through a broker. There is no need to deal with registration on exchanges, transaction principles, etc. Investing in ETFs eliminates the risk of losing your password, falling victim to a wallet hack, or encountering a security breach on a crypto exchange. The ETF management company is responsible for storing ETH in specialized custodial services.

This method is suitable for long-term investors.

What May Happen if I Invest $100 in Ethereum 

The cryptocurrency market has two notable weaknesses: the inefficiency of startups and a high speculative component.

In principle, the value of an asset is determined by its practical usefulness. In this analogy, cryptocurrency startups are analogous to companies, and cryptocurrencies are comparable to stocks. If a company produces a product or service, it will have a net profit, its shares will be attractive to investors, and their price will rise. A dummy company is unlikely to attract significant investments.

The cryptocurrency market is currently dominated by what some refer to as dead crypto projects. Every year, hundreds of new startups emerge, yet many of them are not sustainable and eventually disappear. Here are some relevant statistics:

• In 2024, the number of newly created tokens surpassed 2.5 million. Ethereum and other platforms now allow anyone to create their own tokens.
• The three largest exchanges — Binance, Bybit, and Coinbase — account for more than 3,000 listings per year.
• From 2021 to 2024, approximately 70% of the coins listed on CoinGecko, the largest cryptocurrency aggregator, ceased to exist.

Apart from a beautiful logo, most startups have nothing else to offer. They are useless, and their coins serve only speculative purposes. Examples include meme tokens, Trump and Melania coins, and the cryptocurrency of the Central African Republic.

Something similar was observed in the US stock market, where the dot-com bubble began to inflate in 1995. Following the dot-com crash in 2000, it became apparent that many companies were not producing anything, with most of their budgets allocated to marketing. The same is happening in the cryptocurrency market today.

What to expect if I invest $100 in Ethereum today?

1. The crypto community and regulators will finally find common ground. Legislation will be developed, and cryptocurrencies will become fully legal. Ethereum will finally reduce fees within the network and solve scalability issues. The Ethereum price will increase 5-10 times.
2. The cryptocurrency market will be completely reshaped. Useless startups will disappear, and most of the pure speculation will disappear from the market. The price of coins will finally reach its equilibrium value, but the market will deflate. The Ethereum market value will fall 3-5 times.

At some point, both scenarios can materialize.

Can Investing $100 in Ethereum Make Me Wealthy? 

Apparently not. If you want to become wealthy, a $100 capital would be insufficient to generate substantial returns. It is highly improbable that your investment will appreciate by more than 100 times, as this would necessitate a corresponding increase in the capitalization of the entire market, given that coins generally grow simultaneously. Ethereum’s potential for growth is significant, with projections indicating a 10-fold increase within the next five years. However, the coin has repeatedly declined by more than 50%, failing to surpass its 5-year highs.

Conclusion

Some media personalities believe that Ethereum is a relic of early blockchain days. The platform was the first to offer an innovative solution, but its development has stalled, and it is placing the wrong emphasis. New competing networks will soon surpass Vitalik Buterin’s network.

While such opinions have been expressed for some time, ETH continues to lead the industry in its field. Therefore, Ethereum remains a sound investment, particularly when combined with a diversified portfolio strategy.

Here are some more takeaways:

• Ethereum is one of the most established platforms for developing decentralized applications on the blockchain. Despite challenges related to ecosystem problems and falling behind competitors in several areas, it continues to lead the segment due to its reputation for reliability among users and a strong community of loyal members.
• Ethereum is best suited for long-term investment as a risk diversification tool. It is the second-largest cryptocurrency by market cap and has gained significant market share. Although its growth dynamics are not as robust as those of Bitcoin, it is well-positioned to withstand potential market downturns.
• In the short term, ETH may be a viable option for speculative trading during periods of high volatility.