The crypto market’s recent crash caused $1.3 trillion to be wiped from the industry’s collective market cap, but amid the terrifying red candles and general panic, there are signs that it may have turned a corner. Whether it’s bitcoin regaining $40,000 after dropping to near $30k, or Goldman Sachs making a bullish case for Ethereum or adoption by leading investors and celebrities, there are reasons to be positive in both the short and mid-term.
Goldman Sachs Advances Bullish Case for Ethereum
Speaking of the number two cryptocurrency, on-chain data shows that the ETH balance on digital asset exchanges has returned to pre-dump levels after losing close to 50% of its value during the sell-off.
On a week-by-week basis, ETH looks incredibly stable – and a leaked report by US banking giant Goldman Sachs is nurturing the feel-good factor.
In a section entitled ‘Ether beats bitcoin as a store of value,’ the report acknowledges that most defi applications are being built on the Ethereum network, and that ‘most non-fungible tokens (NFTs) issued today are purchased using ether.’
The report goes on to predict that as crypto use in defi and NFTs becomes more widespread, ‘ether will build its own first-mover advantage in applied crypto technology.’
Although Bitcoin’s market cap is over double that of Ethereum’s at present, the launch of Ethereum 2.0 – whereupon the network will transition to a ‘greener’ consensus algorithm (Proof of Stake) and improve its throughput – could well see the price rocket, particularly given rising concerns about crypto’s energy consumption. Watch this space.