Although it’s difficult for some traders to admit, the crypto markets have been battered over the past 12 months and the events of this week have cemented this outlook. One look at the performance of Solana firmly cements this point. Still, even digital clouds may have a silver lining. In this case, for Ethereum and the best altcoins.
The world’s most well-known cryptocurrency lost more than 58% of its value during Q2 2022 alone and this essentially wiped a staggering $1.2 trillion dollars off of the entire crypto marketplace. While this has caused some traders to run to the proverbial hills, others have begun to look outside of the box towards other alternatives to ‘the digital gold’. Why might 2023 prove to be a landmark year for this currency? Let’s see what Ron and the team at Crypto Lists has to say.
Taking the Global Economic Situation Into Account
A lackluster economic outlook can represent our best friend or our worst enemy. This all depends on which perspective we choose to adopt. Here are two main viewpoints that have already been expressed:
- Delay any major crypto investments due to perceived market instability (bearish)
- Capitalize on potential cryptocurrency uptrends due to their safe haven status (bullish)
Although some analysts currently view the crypto climate with an air of doom and gloom, this doesn’t necessarily have to be the only sentiment. Of course, it’s impossible to deny recent negative news such as consumer-crippling inflation, historically significant interest rate increases, and even the potential for a global recession. These are some of the very same reasons why the best altcoins such as Ethereum could very well be set for a meteoric price rise.
Ether: Far from a Static Cryptocurrency
Ethereum has remained the second-largest cryptocurrency for a number of years and this is no accident. Its developers have made it a point to consistently improve its ecosystem. One recent example involves ‘the merge‘ that occurred in September. As this currency now boasts proof-of-stake benefits, investors can enjoy faster transaction speeds and more scalable blockchains.
Perhaps more important is the simple fact that proof-of-stake systems enable investors to earn more crypto within relatively short periods of time. It is thought that this aspect alone will attract a tranche of new traders who have been sitting on the proverbial fence while hoping to become involved with the best altcoins in terms of profit margins.
Let’s also remember the psychology behind any type of investment. Traders always want to remain assured that their holdings are being properly cared for. Ethereum has made it a point to continually streamline its operations while simultaneously offering more lucrative opportunities. This is one of the reasons why – in the medium term – the bulls may be beginning to stand behind ETH while remaining skeptical about where BTC may be headed.
What About a Christmas Sell-Off?
There’s another issue to address if we hope to embrace a truly objective stance. This involves historical sell-offs that often occur during the holiday season. Might such a scenario come to pass? In truth, it’s impossible to decipher what crypto holders may decide. One potential factor involves the state of consumer confidence during the run-up to Christmas. Especially in relation to recent BoE interest rate hikes.
Let’s still play the devil’s advocate for a moment. Assuming that a sizable portion of Ethereum holders decide to liquidate at least a portion of their holdings, this would represent yet another opportunity to become involved at a new level of support. As Warren Buffett once famously stated:
“Whether we’re talking about stocks or socks, I like buying quality merchandise when it is marked down.”
Keeping an Eye on Post-Merge Ethereum
While the future of many altcoins in 2023 is far from certain, we can already see increased positive sentiment in Ethereum due to how the merge will impact trading logistics. Once sharding has been fully completed, as many as 100,000 transactions per second will be supported. Of course, this will provide the entire ecosystem with an additional level of liquidity.
The merge may also impact the cost of “gas” fees; drastically reducing the charges associated with everyday transactions. Whether leveraging ETH for a short- or long-term hold, this is all good news for the average crypto trader.
A Rally Behind the Best Altcoins? Time Will Tell
Although the observations painted above represent a somewhat rosy picture, even the bulls will have to “bear” in mind that nothing is set in stone. Altcoins are nonetheless proving themselves to be attractive BTC alternatives and Ethereum could very well be on the cusp of a significant uptick. As always, the team at Crypto Lists will keep traders informed along every step of the way.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.