Why I'd Buy Ethereum Over Bitcoin Right Now
Written by Leo Sun for The Motley Fool -> Ethereum has declined more than 40% this year. But it will recover as its blockchain expands and evolves. Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) , the world's two most valuable cryptocurrencies, have both declined about 40% t
Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) , the world's two most valuable cryptocurrencies, have both declined about 40% this year. Investors avoided both tokens amid fears of rate hikes, geopolitical conflicts, and other macro headwinds. Big IPOs, such as SpaceX (NASDAQ: SPCX) , also likely drew more investors away from the cryptocurrency market.
I believe both cryptocurrencies are still solid long-term investments. Bitcoin is a viable hedge against expansionary monetary policies, and Ethereum remains the largest developer-oriented blockchain. However, I'm more bullish on Ether than Bitcoin today for three simple reasons.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Ether can be staked (locked up) on Ethereum's blockchain to earn interest-like rewards. Investors can currently earn yields of 3%-4% on staked Ether, making it a compelling (but more volatile) alternative to CDs, high-yield savings accounts, T-bills, and dividend stocks.
Bitcoin can't be staked on its native blockchain. Therefore, Ether investors will be paid to ride out the near-term volatility, while Bitcoin investors won't. That's why Bitmine (NYSE: BMNR) , the world's largest corporate holder of Ether, has staked most of its 5.54 million tokens.
Bitcoin is a proof-of-work (PoW) blockchain that supports mining . Ethereum was once a PoW blockchain, but it transitioned to a proof-of-stake (PoS) blockchain in 2022. As a PoS blockchain, Ethereum doesn't support token mining -- but it gained support for staking and smart contracts, which are used to develop decentralized apps and other crypto assets.
Ethereum hosted nearly 32,000 active developers as of late 2025, putting it far ahead of similar PoS blockchains like Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA) . When Ethereum's network activity increases, a portion of the Ether used to pay for those transactions is burned (permanently destroyed) -- which tightens up its supply and boosts its value. Therefore, if you expect developers to create more decentralized apps and tokenized assets on Ethereum, it's a smart move to accumulate more Ether as the bulls look the other way.
Lastly, Ethereum is still expanding and evolving. To keep pace with Solana and Cardano, which process transactions faster than Ethereum's Layer-1 (L1) blockchain, Ethereum is launching more Layer-2 (L2) networks to process its compressed data off-chain at higher speeds.
