Coin Bureau Looks Into Ethereum (ETH) And What To Expect From It This Year
The host of Coin Bureau, known as Guy, is looking into Ethereum (ETH) and says that he is “disappointed in the performance of ETH so far this year.”
In a recent video update, Guy shares with the 1.9 million subscribers to Coin Bureau’s YouTube channel his personal thoughts on Ethereum after ETH lost 37% of its value from its 2022 high of $3,860 since January 4.
“I am currently disappointed in the performance of ETH so far this year. Then again, it’s not an ETH-only issue.
The entire crypto market has been dragged through the mud together with the rest of the financial markets.”
Guy looks into the issues related to Ethereum, but points out that crypto whales and miners continue to accumulate the second largest digital asset.
“It’s important to be able to separate out fundamental value from price. Yes, ETH 2.0 has been a whipping boy for some time. People are growing impatient as to the progress. This is understandable but it’s equally important to appreciate just how much work is being done behind the scenes.
Headlines and clickbait don’t reflect the code commits. Moreover, in the interim, there are a plethora of layer-2 scaling solutions that are building a great deal of value on the Ethereum network. Value for their own blockchains and value for the base chain. Value that’s most likely to exponentially multiply when sharding is complete.
Investors, whales and miners are stacking. Once ETH transitions to a cleaner proof-of-stake consensus, this could provide the impetus for an ocean of capital to flood in.”
While there are optimistic signs to ETH, risks, including a successful network merge as well as macroeconomic factors should not be disregarded, the analyst points out.
“It’s as important as ever to highlight that there are risks. The Merge is the biggest upgrade that Ethereum has been through. Yes, it’s been rigorously tested, but when you have an upgrade that impacts $374 billion of value, the stakes are incredibly high.
Moreover, there are no guarantees that The Merge goes through before this market cycle comes to an end. ETH 2.0 delays are commonplace, and Federal Reserve is lifting those interest rates. The ‘taper tantrum’ is underway.”
Guy also mentions Ethereum’s competition, and explains how he has hedged his position should things move in a different direction.
“We cannot be oblivious to the threat of other incredibly strong layer-1 blockchains – Avalanche (AVAX), Solana (SOL), Fantom (FTM), Terra (LUNA) and Cardano (ADA). All are competing for a piece of that ETH pie.
I hold some of those as well as a hedge for my ETH position. But of course, there’s a reason why that ETH position is the largest in my portfolio and there is a reason I bought ETH in the dip a few weeks ago.”
At time of writing, ETH is trading at $2,434, up 1.65% on the daily chart.
