According to the Wall Street-based Bernstein investment firm, you can find 7 possibilities that can ignite the crypto money bull market in the details of our news.
For the crypto money market, which has been in a bear market captivity for about 10 months, a few “rebirth” scenario is presumed to be in question. According to the news of CoinDesk, the most important 7 of these scenarios are analysts of veteran Wall Street investment firm Bernstein recently. Gautam Chhugani and Manas Agrawal Shared by.
1. Successful Completion of Ethereum The Merge
Although Ethereum Merge, one of the most important and perhaps the most complicated updates in the history of crypto money, is less than 10 days away, there is still a doubt in the minds of investors. If a harmonious transition can be made with exchanges and network validators without any problems, this could act as a catalyst for a new wave of rise.
2. Rollups Create a New User Request
If the rollups that have been important for the Ethereum mainnet lately can take on sufficient transaction volume, a new demand explosion may occur. If we need to talk about Rollup briefly; It can be defined as a system that takes transactions out of the main network through smart contracts on the main network. The rollup solution aims to perform transactions outside the main network, resulting in fewer transactions on the main network. A block is created by rolling up many transactions, that is, bringing them together. This provides speed and scalability to the network itself. There is already a significant increase in rollup demand, with rollups accounting for around 20% of mainnet transactions.
3. Ethereum Market Cap Overtakes Bitcoin
Among the developments that investors expect and perhaps want most, is Ethereum’s overtaking Bitcoin in terms of market cap and sitting in the first place. The reason for this may be that Ethereum is designed to be more innovative than Bitcoin and compatible with the global system, according to some investors in terms of technology. It seems possible to use Ether as a digital currency in a future blockchain economy.
4. The Return of the DeFi Season with Rollups
According to analysts, the rise in the 2020 season was the first DeFi (Decentralized Finance) summer. But since those days, interest in DeFi has faded. The fact that the transaction fees of rollups on tier 2 have decreased recently can make DeFi products attractive again and increase their use. It is thought that this situation can act as an igniter for a new upward wave.
5. Orientation of NFTs to the Gaming Market
“Crypto games will have their own unique culture,” the Bernstein team said. Analysts Chhugani and Agrawal point to a massive brain drain from traditional game studios to Web3 game development. This is interpreted as an indication of a strong bullish signal, according to analysts.
6. Proliferation of Token Economies Built on Value and Utility
More sustainable, value and utility token designs can attract more retail investor attention and make them sit back at the table compared to meme tokens.
7. Transformation of Oil Protocol Thesis into Oil Application Thesis
Oil protocol thesis; It suggests that the value on the blockchain will accumulate at the underlying protocol layer rather than the application layer. According to Bernstein analysts, “long-tail app tokens” will grow thanks to improved scalability, economical transaction costs, improved token value studies, and retail interest to invest in the apps they use. In this probability, it is among the possibilities that they can trigger an upward movement in the same way.