Ethereum stock (ETH-USD) may be down since The Merge, but this might be a once-in-a-lifetime investment opportunity.
What Happened to Ethereum’s Strong Post-Merge Surge (ETH)?
The world’s second-largest cryptocurrency has dropped 25% in the last 30 days. Given the widespread malaise ailing both the crypto and stock markets, this dip may not seem so alarming. Still, investors were expecting so much more from Ethereum since it had just achieved the single-greatest achievement in crypto history.
The good news is that Ethereum stock (ETH-USD) is most likely undervalued at its current price of $1,309. Ethereum has fallen more than 60% this year and over 75% from its all-time high of $4,891.70. However, there are various reasons to consider purchasing Ethereum on the cheap.
Ethereum Stock: Speed Improvement is Far From Complete.
One popular misconception concerning Ethereum stock (ETH-USD) is that the Merge is a one-time occurrence. That is not entirely correct. As Ethereum co-founder Vitalik Buterin said in mid-July, fresh performance advancements to Ethereum would continue over a more extended period even after The Merge. According to Buterin, the renovation is now just 55% complete. So, if you’ve been frustrated by The Merge’s slower-than-expected transaction speeds or higher-than-expected transaction costs, don’t worry.
Furthermore, concentrating just on Ethereum stock (ETH-USD) misses the reality that a significant amount of activity is occurring with Layer 2 blockchains built on top of Ethereum. These Layer 2 blockchains make the Ethereum ecosystem work more quickly and effectively.
Polygon, the Layer 2 blockchain that has received the most attention, has emerged as a fascinating bet on the future of non-fungible tokens (NFTs) and Web3. However, several alternative Layer 2 solutions are available, and Buterin has suggested that more Layer 3 solutions are on the way. When examining the overall health of the Ethereum ecosystem, various Layer 2 scaling options must be considered.
Investors Place Too Much Emphasis on External Variables.
Unfortunately, investors prefer to concentrate on external issues. These are external elements that Ethereum cannot influence, such as Federal Reserve interest rate rises and macroeconomic indices such as the latest employment numbers. While some technical experts believe Ethereum will soon break out to the $1,500 level, all of these external factors seem to be weighing on the price of Ethereum.
Big Ideas Are on the Way for 2023.
Finally, Ethereum has long been a market innovator in the blockchain and cryptocurrency space. Ethereum invented smart contracts, created the groundwork for the decentralized finance (DeFi) business, invented NFTs, and pulled off The Merge. Buterin has suggested that more innovation is coming in the next 12 months.
If you’re an Ethereum investor, the upcoming innovation in 2023 is really intriguing. It implies that Ethereum will not be resting on its laurels anytime soon. In a year, you may look back at Ethereum’s current price of $1,309 and wonder why you didn’t buy it when it was so cheap. Yes, this is the moment to acquire Ethereum on the cheap.
Featured Image- Unsplash @ Art Rachen
