Ethereum is currently facing an intense correction. However, one of the largest crypto companies sees no reason to worry – on the contrary: According to a new forecast, Ethereum is one of the most important cryptocurrencies for the next bull run. The reason: decentralized economy (DeFi). Should You Buy Ethereum Now?
Is Ethereum Crashing Again?
$2,000 seemed within reach – but now the bears are behind the wheel in the short term: Ethereum (ETH) has lost a whopping 4.72% in the last 24 hours, the smart contract platform fell from yesterday’s high of $1,630 in the early hours of this morning to $1,531. From here, Ethereum recovered only minimally and moved to $1,550, where the coin is currently trading.
Popular professional trader Michaël van de Poppe believes the correction is normal, writing to his more than 645,000 Twitter followers:
“Ethereum may react and bounce a bit in the markets here, but we’re probably looking at the mid-$1400s for a real bounce.
The corrections are fine.”
Bullish Fact: According to a report by the crypto exchange Crypto.com, the number of Ethereum holders increased by 263% between January and December 2022: from 27 million in January to 87 million at the end of December.
Although the rate is affected by volatility in the short term: In the long term, the growth curve of the second most valuable cryptocurrency appears to be pointing upwards. Assuming, of course, that the Ethereum network develops as promised. In March, for example, the long-awaited “Shanghai” upgrade will come – analysts expect similar buying pressure in advance and, as a result, rising prices.
DeFi as a bull run catalyst
But Ethereum could not only generate bullish momentum in the short term – ETH forecasters also see huge potential for the next bull run. Even more: Ethereum may even be one of the most important cryptocurrencies for the next bull cycle. The reason: decentralized economy (DeFi). What is DeFi?
Decentralized finance is an open and global financial system developed for the internet age. Proponents see DeFi as an alternative to an opaque, tightly controlled system held together by decades-old infrastructure and processes.
Because: DeFi wants to give users back control and transparency over their money. Similarly, Dapps (decentralized apps) give users access to global markets and can represent a real alternative to their local currency or banking options. DeFi products make financial services available to anyone with an internet connection. Billions of dollars have already flowed through DeFi apps and continue to flow – more every day. Already today there is a thriving crypto economy where you can borrow, lend, long/short, earn interest and much more.
Ethereum – The DeFi Top Dog
This is bullish for Ethereum, as the smart contract platform is the most popular blockchain for DeFi applications. No other blockchain has captured as much DeFi capital as Ethereum.
And that, according to Pantera Capital Chief Investment Officer Joey Krug, is the basis for the next bull market. The CIO of the world’s largest crypto hedge fund is certain: the next bullrun will be mainly driven by DeFi. DeFi protocols have some advantages over humans, according to the industry observer:
“Decentralized protocols can’t just say, ‘Trust me, I graduated from MIT and I’ll donate everything to charity.'” DeFi protocols are more of a ‘you don’t have to trust us,’ or as Google put it nicely before they dropped it: DeFi protocols ‘can’t be evil’.”
There are still some problems, but they could be solved in two to three years and then form “an exciting basis” for the next bull run. In this regard, there are “excellent investment opportunities,” Krug emphasizes.
Buy Ethereum now
If you’re looking for other promising crypto projects beyond Ethereum (ETH): The CryptoNews Industry Talk Team has reviewed and analyzed the 15 best crypto gaming cryptocurrencies for 2023.