The volume giants of the market Bitcoin and Ethereum had a disappointing start to the new year. Some analysts give “89 days” as similar corrections have been experienced before. “Guy”, analyst at the popular crypto Youtube channel Coin Bureau, considers how the leading altcoin project can attract an ocean of capital.
“All markets have been dragged into the mud”
In a new video, Guy shared his analysis after Ethereum lost more than 34% of its value in the first weeks of 2022. The analyst states that the drop is not exclusive to the cryptocurrency market:
I am currently disappointed with ETH’s performance this year. However, this is not just an issue with ETH. The entire crypto market has been dragged into the mud along with the rest of the financial markets.
The analyst then examines the details of why some people are disappointed with Ethereum, but notes that crypto whales and miners continue to accumulate ETH:
It is important to be able to separate core value from price. ETH 2.0 studies are continuing. People are looking forward to progress. That’s understandable, but it’s equally important to appreciate how much work has been done behind the scenes. Moreover, there are numerous second-layer scaling solutions that create great value on the Ethereum network. Investors, whales and miners are hoarding. When ETH moves to a cleaner PoS mechanism, it could provide the impetus for the ocean of capital to overflow.
Analyst evaluates competing altcoin projects
Guy also adds that, despite optimistic signs, macroeconomic factors also apply to Ethereum, as well as risks such as a successful network consolidation:
Emphasizing that there are risks is more important than ever. Consolidation is the biggest upgrade Ethereum has ever experienced. It’s been rigorously tested, but when you do an upgrade that impacts $374 billion in value, the stakes are incredibly high. Also, there is no guarantee that the merger will happen before the market cycle ends. ETH 2.0 delays are commonplace and the Fed is raising interest rates. The ‘downswing’ continues.
We cannot remain indifferent to the threat of incredibly powerful first-layer Blockchains like Avalanche, Solana, Fantom, Terra and Cardano. They all want a piece of the ETH pie.
