Is Ethereum the Best Cryptocurrency to Buy Under $4,000?

Published: Friday, December 5, 2025 at 9:20 am

Ethereum's Price Dip: A Buying Opportunity?

Ethereum, the second-largest cryptocurrency by market capitalization, is currently trading around $3,100, a significant drop from its earlier highs of $4,800 this year. This price point coincides with the anticipated launch of the Fusaka upgrade, a network update designed to enhance the platform's efficiency and user experience.

The core appeal of Ethereum lies in its dominance in the decentralized finance (DeFi) space. It serves as the leading platform for DeFi, real-world asset tokenization, and smart contract finance. With $65.6 billion in total value locked (TVL) within its DeFi ecosystem, Ethereum maintains a substantial lead over its competitors.

The Fusaka upgrade aims to address key issues, primarily high gas fees and scalability. The update is expected to reduce transaction costs for Layer-2 (L2) networks by 40% to 60%, potentially alleviating congestion on the main Ethereum network. Additionally, the upgrade introduces mechanisms to mitigate fee spikes during periods of high network activity.

However, investors should temper their expectations. While Fusaka promises improvements, it's unlikely to transform Ethereum into a low-fee environment overnight. The improvements are expected to be incremental, and fees will likely remain higher than those of some competing platforms.

The primary alternative to Ethereum for growth-oriented investors is Solana. Solana offers faster and cheaper transactions, but its DeFi segment is significantly smaller, with $8.7 billion in TVL. For those building a new crypto portfolio, Bitcoin may be a more suitable core holding due to its relative simplicity and lower technological risk.

BNN's Perspective:

Ethereum presents a compelling investment opportunity for those already invested in Bitcoin and comfortable with higher risk. The potential for growth in the DeFi sector makes Ethereum attractive, but investors should approach it with a long-term perspective, acknowledging the ongoing development and competitive landscape.

Keywords: Ethereum, ETH, Cryptocurrency, DeFi, Fusaka, Upgrade, Gas Fees, Scalability, Bitcoin, Solana, Investment, Blockchain, Smart Contracts, Total Value Locked, TVL, Decentralized Finance, Crypto Portfolio, Digital Assets

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