It’s no secret Ethereum (ETH 4.36%) has had a difficult time this year. But even though things look bleak at the moment, there is reason to believe that Ethereum still has immense potential.

A rebound won’t happen overnight, but for the long-term investor, I’m not sure there are as many cryptocurrencies with as clear a path to future value appreciation as Ethereum . Here are three reasons why Ethereum is a bargain below $4,000.

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1. A shift in Bitcoin dominance looms

For almost two years, Bitcoin (CRYPTO:BTC) dominance (a metric that quantifies the value of Bitcoin relative to all cryptocurrencies) is on the rise. This trend, although sometimes frustrating for altcoin enthusiasts, is a typical feature of a recovering bull market. Bitcoin often acts as a gateway for capital entering the crypto space, attracting investor interest as a relatively “safer” asset.

But as markets stabilize and confidence builds, capital tends to flow out of Bitcoin and into altcoins. As the largest altcoin, Ethereum will benefit immensely when this change inevitably occurs.

It’s unclear when this change will occur, but the higher Bitcoin’s dominance remains, the more likely we are to start to see it fall. And when that happens, Ethereum could make up some ground.

2. The central role of Ethereum in the DeFi ecosystem

The case for Ethereum goes beyond just broader market trends. By almost every metric, Ethereum is the backbone of one of the most important sectors of the digital economy, Challenge.

DeFi applications cover a wide range of financial activities, from lending and borrowing to trading and staking, and they are disrupting traditional finance with the promise of lower costs and fewer intermediaries. Platforms like Aave, UniswapAnd Manufacturer are just a few of the many DeFi projects built on Ethereum, and each has contributed to Ethereum’s position as the go-to blockchain for decentralized finance.

Today, over 50% of all value in the DeFi ecosystem resides in Ethereum. While some might expect this dominance to gradually diminish as competitors emerge, the reality is quite the opposite. Ethereum’s hold on DeFi remains strong thanks to one crucial factor: reliability.

In DeFi, security is paramount. With billions of dollars of user funds at stake, developers are overwhelmingly choosing Ethereum due to its proven track record of stability and resilience. As DeFi grows, with virtually all signs pointing to continued growth, Ethereum’s role as the backbone of this evolving financial ecosystem will likely become even more central in the years to come.

3. The pioneering role of Ethereum in asset tokenization

Another compelling reason to consider buying Ethereum below $3,000 is its central role in the booming world of tokenized assets. Tokenization, the process of converting real-world assets like real estate, stocks, bonds and even artwork into digital tokens on a blockchain, is transforming finance – and Ethereum is leading the charge.

Tokenized assets offer several benefits, including fractional ownership, faster settlement times, and reduced transaction costs. These benefits have captured the attention of large financial institutions seeking to streamline and modernize their operations.

Some of the biggest names in finance are already making progress in this area. In March 2024, black rockthe world’s largest asset manager, has launched its tokenized money market fund, BUIDL. More recently, UBS followed suit with its tokenized fund, uMINT.

Ethereum currently dominates the tokenization landscape, with over $3 billion in assets tokenized on its blockchain – a significant lead over its closest competitor, Stellarwhich only houses around $390 million. This advance puts Ethereum in a prime position as financial giants increasingly adopt blockchain-based tokenization solutions.

In short, Ethereum remains a good deal

Investing in Ethereum under $4,000 may seem risky in today’s market, but the upside potential is hard to ignore. With Bitcoin’s likely dominance, Ethereum’s established presence in DeFi, and its leadership in asset tokenization, its long-term prospects remain compelling.

In 2021, Ethereum reached a high of over $4,600. Since then, development and innovation on blockchain has only accelerated. If Ethereum could achieve this valuation, there is a strong case for significant growth ahead. How far could he go? Only time will tell. But it’s probably above $4,000 and possibly well beyond its all-time high.