1 of the Best Cryptocurrencies to Buy Right Now

Crypto is soaring. The market is up about 35% in November, with Bitcoin leading the charge, adding billions to its market cap and reigniting enthusiasm across the board. While Bitcoin is a fantastic investment for those with a long-term horizon, the current market conditions present a timely opportunity for another standout cryptocurrency: Ethereum (CRYPTO: ETH) .

Here are three reasons Ethereum is one of the best cryptocurrencies to buy today.

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1. Ethereum has underperformed the broader crypto market

This year, Ethereum has significantly lagged behind its peers. Bitcoin has surged almost 110%, and Solana has more than doubled, climbing about 120%. Meanwhile, Ethereum is up just 45% year to date -- and as recently as October, it had risen just a mere 5% in 2024.

This relative underperformance, however, is precisely what makes Ethereum so compelling now. With its price still 30% below its all-time high, Ethereum offers substantial upside potential. If momentum continues and the market dynamics align, Ethereum could break through its previous highs, offering attractive returns for investors willing to give Ethereum another chance.

2. Ethereum's struggles stem from predictable market dynamics

Ethereum's underwhelming performance isn't without reason, but the factors behind it may actually signal future strength.

First, this underperformance is not unusual. Historically, Ethereum and other altcoins tend to bleed value relative to Bitcoin during years when Bitcoin undergoes a halving . The reduction in Bitcoin's inflation rate during these cycles often draws disproportionate attention and capital.

Second, Ethereum's recent struggles also stem from the growing adoption of Layer 2 (L2) scaling solutions like Arbitrum , Optimism, and Base. While these L2s rely on Ethereum's blockchain for security, they bypass some usage fees by bundling multiple transactions into a single "blob" published on Ethereum's network. This has resulted in reduced fees paid to the Ethereum network, cutting the amount of Ether coins burned -- a mechanism crucial for maintaining a deflationary supply dynamic.

As a result, Ethereum has shifted into a temporary inflationary state, with supply increasing slightly during the past few months. But this pattern appears to be reversing. Network activity is climbing, transaction volume is increasing, and to the appreciation of holders, Ethereum's burn mechanism could subsequently kick into gear.