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Cryptocurrencies this year they started badly. The Federal Reserve has become more hawkish, which has meant a headwind for the sector. Also, long-term cryptocurrency holders and whales seem more likely to sell and take huge gains in recent years. All this has put pressure on the sector, despite a much improved regulatory environment.
However, this could also represent a significant opportunity to buy the sauce. After all, crypto is inherently volatile and has survived many declines in the past, only to hit new highs.
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Although there are now thousands of cryptocurrencies in circulation, in my opinion only a handful are worthy of investment. The best thing to buy with $500 right now is Ethereum (CRYPT: ETH)the second largest cryptocurrency in the world, with a market cap of over $343 billion.
Several years ago, Ethereum adopted a new energy-efficient consensus mechanism, proof-of-stake (PoS), to govern its network. In PoS, Ethereum holders stake their tokens to validate transactions and create new blocks, earning rewards in the process. The Ethereum network also supports smart contracts, allowing developers to build decentralized applications for a range of use cases.
The transaction of stablecoins has become one such use case. Stablecoins are digital assets backed by a currency or commodity. They intend to use blockchain technology without the inherent risk of cryptocurrencies. For example, stable currencies pegged to the US dollar can offer people a very efficient way to transfer money internationally.
Ethereum has become the go-to place for stablecoin transactions. In the fourth quarter of 2025, the Ethereum network recorded $8 trillion in stablecoin transactions, according to data from Token Terminal. Stablecoins Issuance on Ethereum also increased by about 43% to more than $180 billion by the end of 2025, according to Blockworks.
It is also clear that interest in stablecoins is growing, with many major companies exploring the technology for their respective businesses, including major banks, Amazoni Uber. As more companies adopt stablecoins, most of which are issued on Ethereum, network activity should grow, driving greater demand for Ethereum tokens.
Also, Ethereum has not enjoyed the same surge in recent years that Bitcointhe largest cryptocurrency in the world. Part of this is likely due to Bitcoin’s digital gold narrative, which has at times driven the token out of the industry.
