The developments in the cryptocurrency market in 2022 were definitely a nail-biter. Despite the fact that at the end of 2021 Bitcoin was heading towards $70,000, the collapse of the Terra/Luna stablecoin sent shockwaves through the market, starting the “dance” of bankruptcies in the industry, the most recent being the FTX developments.
This “domino effect” dominated the market, dealing a heavy blow to major cryptocurrencies such as Bitcoin and Ethereum, which saw most of their value evaporate.
Two questions on analysts’ lips, according to finanzen.ch:
a) whether 2023 will be a year of market recovery especially after the particularly difficult autumn of 2022, and
b) whether Ethereum will manage to overtake Bitcoin and find itself at the top of the cryptocurrencies.
In particular, the well-known cryptocurrency analyst Mike McGlone of Bloomberg recently made the assessment that in the next bullmarket in the cryptocurrency market, ether could overtake bitcoin mainly thanks to the reforms that have already taken place with the now famous “convergence” (merge) last autumn.
He considers it a “top candidate” to continue to outperform the “first-born child” of the cryptocurrency market.
At the same time, Velvet Capital believes that Ethereum has become more efficient with a high degree of scalability thanks to the merge and is “on its way” to becoming deflationary, which is increasingly important the higher the use of the cryptocurrency.