The Successful Ethereum Merger Paves the Way for Steady Growth
"As of October 25, the Ether price is about 70% lower than during the peak of 2021. But it is about four times higher than the 2020 average. This speaks to the inherent volatility of an emerging asset and technology with a common premise for the drawdowns that most often follow record highs,"McGlone wrote.
The Altcoin Market Shows a Downward Trend
Contrary to traders' expectations, the altcoin market experienced a downward trend following Ethereum's official transition to PoS. Mike McGlone's tweet suggests that Ethereum's growth may not solely be due to the merger, especially amid the current global energy crisis. Many developers prefer using Ethereum to build decentralized finance (DeFi) applications, which could drive Ethereum's value up. Additionally, Ethereum's smart contracts are gaining popularity in the banking and finance sectors, further driving its growth.
Ethereum Trades at a Discount Despite Bull Market
According to Mike McGlone, Ethereum is "trading at a discount" in the cryptocurrency market, even during the current sustained bull market. The Ether price is around 70% lower than its peak in 2021 but is still four times higher than the 2020 average. This volatility is typical of an emerging asset and technology and is expected, with drawdowns often following record highs.
Bitcoin's Favorable Prospects
Despite the current trend in Ethereum's value, Mike McGlone remains confident about Bitcoin's prospects. According to his recent forecast, the first cryptocurrency could outperform most traditional assets, especially with central banks' increase in interest rates.
The successful transition of the Ethereum network to PoS has set the stage for a steady growth in the value of the second-largest cryptocurrency. While the altcoin market may show a downward trend, Ethereum's inherent qualities, such as its use in DeFi and smart contracts, are expected to continue driving its growth. Meanwhile, analysts remain optimistic about Bitcoin's future, with its potential to outperform most traditional assets.