Coin Bureau, a popular cryptocurrency channel, shared a review after leading smart contract platform Ethereum had a disappointing start to the new year.
Coin Bureau server, known by the alias Guy, after the leading smart contract platform lost more than 34% of its value in the first weeks of 2022 Ethereum (ETH) He shared his personal thoughts about
“At the moment I am disappointed with ETH’s performance this year. Then again, this isn’t 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 went into the details of why some people were disappointed with Ethereum, but noted that crypto whales and miners continue to accumulate ETH.
“It is important to be able to separate the core value from the price. Yes, ETH 2.0 is a ‘thing’ that has been whipping around for a while. 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.
Headers and clickbait do not reflect code commitments. Moreover, meanwhile, Ethereum networkThere are a number of Tier-2 scaling solutions out there that are of great value. Value for their own blockchain and value for the underlying chain. The value most likely to increase exponentially when shredding is complete.
Investors, whales and miners are hoarding. As ETH moves to a cleaner proof-of-stake consensus, it could provide the impetus for an ocean of capital to overflow.”
The Coin Bureau host also considers that, despite these optimistic signs, macroeconomic factors apply to Ethereum as well as risks such as performing a successful network merge.
“It is very important, as always, to emphasize that there are risks. Consolidation will be one of the biggest upgrades Ethereum has ever experienced. Yes, it’s been rigorously tested, but when you do an upgrade that impacts $374 billion in value, the risks will be incredibly high.
There is also no guarantee that the Merger will occur before this market cycle ends. ETH 2.0 delays are common and [Federal Rezerv Başkanı Jerome Powell] raises interest rates. The ‘condensation watch’ in the markets continues.”
Guy concluded his analysis by discussing several Ethereum competitors, all with a release year in 2021.
“We cannot remain indifferent to the threat of incredibly powerful Tier-1 blockchains such as Avalanche (AVAX), Solana (SOL), Phantom (FTM), Terra (LUNA) and Cardano (ADA). All vying for a piece of this ETH pie.
Besides some of these, I also hold a hedge for my ETH position. But of course there is a reason why this ETH position is the biggest in my portfolio and there is a reason why I bought ETH on the decline a few weeks ago.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.