AssetsMar 02, 2023

Ethereum (ETH) could take significant dominance in the cryptocurrency market, according to analysts at Bernstein

According to experts, the second largest cryptocurrency is characterized by competitive dominance, dynamics of potential growth and clear market leadership.

According to analysts from Bernstein Ethereum, ETH has the potential to dominate the cryptocurrency market. All this due to its competitiveness, growth dynamics and clear leadership. According to experts, the network of the second largest digital currency has shown great resilience, despite the ongoing slump in the digital asset market.

Ethereum could take over market dominance, according to Bernstein

The year 2022 brought huge losses to cryptocurrency investors around the world. The price of Ethereum fell below the $1,000 line at that time. In January 2023, however, a rebound appeared on the ETH chart. The increase then amounted to almost 40%. Despite such a large jump in price, since its peak in November 2021, this cryptocurrency is still 66% cheaper.

The ongoing bear market has strongly affected activity in various cryptocurrency networks. Ethereum, however, maintained an edge over the competition. Bernstein analysts Gautam Chhugani and Manas Agrawal stated in a note on February 28 this year that the blockchain showed above-average resilience.

In the opinion of these experts, Ethereum has “clear leadership in the digital asset market”. Currently, this cryptocurrency is valued at around $ 1.6 thousand, and after reaching the $ 1.7 thousand line in recent weeks, a correction appeared on its chart.

Shanghai on the horizon

Bernstein analysts also recognized that the upcoming update in Ethereum will have a very positive impact on this project. We are talking about Shanghai, which is to take place this quarter. According to some people, the liquidation of ETH from the escrow contract may become a catalyst encouraging other market participants to increase staking.

The next milestone for Ethereum will also be EIP-4844. As part of it, transaction costs for roll-ups will be reduced at least 10 times. This is directly related to layer 2.

Chhugani and Agrawal noted in their report on Ethereum that 2023 could be a time of many launches in the L2 area. Analysts also drew attention to other interesting elements, i.e. the decrease in ETH supply after the introduction of the London update in 2021. This, in turn, may also have a positive impact on the value of ETH in the near future.