Cryptocurrency analyst known as com Guy of popular cryptocurrency channel Coin Bureau does not believe that the recent drop in the price of ETH will reduce investor demand.
Thus, he points out that instead of being a catalyst against the popularization of ETH, the recent fall will further drive institutional investors to buy ETH.
Institutional capital will migrate to ETH
So while he says he is disappointed with ETH’s performance for the year, he believes institutional demand will drive the cryptocurrency again.
“I am currently disappointed with the performance of ETH so far this year. But this is not just an ETH problem. The entire cryptocurrency market has been dragged through the mud along with the rest of the financial markets,” he said.
Thus, Guy points out that whales and cryptocurrency miners continue to accumulate ETH and this is a good sign.
“It’s important to be able to separate fundamental value from price. Yes, ETH 2.0 has been a scapegoat for quite some time. People are getting impatient with progress. This is understandable, but it is equally important to assess how much work is being done behind the scenes,” he said.
So he points out that there are a plethora of layer 2 scaling solutions that are creating a lot of value on the ETH network.
“Investors, whales and miners are piling up. Once ETH transitions to a cleaner PoS consensus, this could provide the impetus for an ocean of institutional capital to flood in and generate massive ETH purchases,” she said.
The Coin Bureau host also says that despite these upbeat signs, risks such as a successful network merger as well as macroeconomic factors remain in play for ETH.
“It is as important as ever to highlight that there are risks. The merger is the biggest upgrade that ETH has gone through. Yes, it has been rigorously tested, but when you have an update that impacts $374 billion in value, the stakes are incredibly high.”
So Guy concludes his review by discussing various ETH competitors, all of which have a standout year in 2021.
“We cannot ignore the threat of other incredibly strong tier 1 blockchains – Avalanche (AVAX), Solana (SOL), Fantom (FTM), Terra (LUNA) and Cardano (ADA). Everyone is competing for a piece of this ETH pie”, he concludes.