If You Invested $1,000 In Ethereum At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

Zinger Key Points
  • Several factors led to a surge in Ethereum buying in 2020 and especially in 2021.
  • Ethereum and other cryptos are prone to boom-to-bust drawdowns.

Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.

Ethereum's Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Ethereum has been much stronger.

Related Link: If You Invested $1,000 In Ripple's XRP At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

Several factors led to a surge in Ethereum buying in 2020 and especially in 2021. Younger Americans receiving three rounds of direct stimulus payments have poured a significant chunk of that cash into investments, including Ethereum. In addition, cryptocurrency investing became extremely trendy in 2021, and Ethereum was one of the most popular cryptos in the market.

At the beginning of 2020, Ethereum was trading around $129. By the beginning of March, the cryptocurrency had risen to $218 as news of the virus spreading in China prompted concerns about a U.S. pandemic. On March 13, 2020, Ethereum plummeted to its pandemic low of $88.50 as global stock markets tanked. The good news for Ethereum investors is the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.

By November, Ethereum was back up above $500.

Ethereum In 2021, 2022, Beyond: On Jan. 19, 2021, influential Tesla Inc TSLA CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including Ethereum.

In 2022, Ethereum is planning The Merge, an update to its blockchain that will transition it from a proof-of-work verification model to a much more environmentally friendly proof-of-stake model.

Ethereum ultimately hit a new all-time high of $4,865 in November 2021 but has since pulled back significantly. Today, Ethereum is trading back down at $1,859.

Still, investors who bought Ethereum on the day it hit its pandemic low and held on have generated a huge return on their investment. In fact, $1,000 in Ethereum purchased on March 13, 2020, would be worth about $14,700 today.

Given the rise in Ethereum prices in the past two years coupled with the loss of stimulus payment support in 2022, some investors are understandably concerned about just how much further Ethereum prices could fall. Ethereum and other cryptos are prone to boom-to-bust drawdowns, and Ethereum prices are already down 36% in the past year.

Photo: Hi my name is Jacco via Shutterstock

Posted In: BitcoinElon MuskEthereumCryptocurrencyEducationTop StoriesMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.