3 Reasons to Buy Ethereum Before January 2026

Ethereum will benefit from the growth of the stablecoin market and real-world asset tokenization.
Regulatory clarity may help cryptocurrencies recover from their current slump.
The price of Ethereum is 40% off its all-time high. Analysts still predict it will skyrocket before 2030.
10 Stocks We Like More Than Ethereum ›

As I write this (December 27), Ethereum (CRYPT: ETH) it’s down almost 12% in the past year. Just four months ago, it set a new high of nearly $5,000, but over the past two weeks, it has traded near $3,000. Given that VanEck analysts predict Ethereum it could reach $11,800 by 2030, which could make today’s price an attractive entry point.

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Here are three reasons to consider buying Ethereum before its price rises again.

The idea of tokenization of real-world assets Essentially, the tokenization of ownership of blockchain assets came into effect in 2025. This is partly due to legislation that established a framework for stablecoins. It can be applied to all types of assets, including real estate, art and bonds. Tokenization of assets removes much of the friction of trading them. It can also make them more accessible to a wider group of investors.

Stablecoins are essentially tokenized forms of traditional currencies such as the US dollar. The issuer holds real cash in reserve for each token it issues. Blockchain transactions are faster and cost less than traditional forms of payment. As such, stablecoins offer the benefits of blockchain without the volatility of other cryptocurrencies.

If we think Bitcoin (CRYPTO: BTC) as a bank vault, Ethereum is like a machine room. Ethereum pioneered smart contracts, which are the small pieces of blockchain code that enable tokenization. According to rwa.xyz, there are over $180 billion in tokenized assets, including stablecoins, on Ethereum. That’s more than three-quarters of the assets distributed across all blockchain networks.

Tokenization has a lot of potential. McKinsey believes the market could be worth $2 trillion by 2030. However, it’s unclear how it will evolve. Specifically, whether major financial institutions and payment providers will use existing crypto networks like Ethereum or build their own blockchains. We will probably see a combination of both, but the more people build on Ethereum, the stronger the ecosystem will be.

In December, JPMorgan Chase announced the launch of its tokenized money market fund. My OnChain Net Yield Fund (MONY) tokens are issued on Ethereum and qualified investors can purchase tokens through the Morgan Money platform. Next year will almost certainly bring a series of similar products. Other institutions may follow JPMorgan’s lead and build on Ethereum.

Crypto industry leaders had high hopes that market structure legislation would pass by 2025. The House passed the Clarity Act over the summer, which, among other things, establishes oversight of digital assets and removes some of the uncertainty about what cryptocurrencies can and cannot do. However, it still needs to pass the Senate, which has its own crypto bill. The Senate Banking Committee is merging the two, and we may see progress in 2026.

Clearer regulation would strengthen cryptocurrency in several ways. It allows projects to grow without fear of SEC charges for violating securities laws. It also paves the way for more institutional investment, a trend Ethereum has already benefited from. There are more than $17 billion in Ethereum exchange-traded funds (ETFs), according to data from Coinglass.

Indirectly, removing legal or compliance hurdles could boost the decentralized finance (DeFi) industry. As with tokenized assets, Ethereum is the backbone of DeFi, hosting a large number of applications. Simply put, if clear legislation helps the crypto industry grow, Ethereum will almost certainly benefit.

Sentiment has a significant impact on cryptocurrency prices and investors are nervous right now. The wave of optimism surrounding a pro-crypto administration in the US and other factors has faded. Unfortunately, it is still early days for the cryptocurrency, and this is reflected in its volatility.

There is much we do not know about how the industry and technology will evolve. As such, even promising cryptocurrencies like Ethereum should only make up a small portion of your portfolio. While there are good reasons to think it can recover and set new highs in the future, there are no guarantees. The price of Ethereum may drop further. In the longer term, other smart contract cryptocurrencies such as solana can take part of its market share.

That said, Ethereum has both staying power and proven use cases. In the coming decades, it has a good chance of surviving nervous markets and playing a prominent role. Even more so if more companies use Ethereum as they integrate blockchain technology into their operations.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Emma Newbery has positions in Ethereum and Solana. The Motley Fool has positions and recommends Bitcoin, Ethereum, JPMorgan Chase and Solana. The Motley Fool has one disclosure policy.

3 Reasons to Buy Ethereum Before January 2026 was originally published by The Motley Fool

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