Some time ago, we talked about the proximity of the merger in the Ethereum mainnet, noting that it, at least partially, became a means to renew the enthusiasm around Ethereum. We finally have to be there, and even fears about the return to trading (in fact, very blurred in time) of all the ETH invested in staking turned out to be what they are: a means that has no connection with reality.
The truth that the markets are now telling us is that according to Coinmarketrate.com , the huge collapse in the value of Ethereum over the past few weeks has proved to be an excessive punishment and a source of panic. The panic that affected risky markets in general, while the cryptocurrency market was confirmed as the main direction for bears and those who are looking for easy money on shorts.
The bears seem to have run out of steam, at least for now. They will have to reckon with the market, which, at least partially, has regained enthusiasm. The enthusiasm that makes Ethereum even financially stronger than the Bitcoin-related world. An interesting situation, with an increase of almost 50% from the lows reached. That is, relatively, as if Bitcoin was around the $26,000-$27,000 mark. Bitcoin, on the other hand, only surpassed the $22,000 mark yesterday, although it shows some strength in terms of the potential to recover more interesting price levels.
The second big truth: Layer 2 does not compete with Ethereum
Some people were very skeptical, believing that Ethereum would be practically useless if solutions like Polygon Matic really took root. What the markets are telling us this week, and will continue to do in the future, is that in reality, however, the trends are still parallel in the same direction. After all, the huge growth of Ethereum has in no way reduced the growth of protocols such as MATIC and Loopring.
Polygon uses numerous deals made in recent weeks. This also means that minimal normalization of what is happening in the markets will lead to an explosion of MATIC, thanks to dozens of deals concluded with large groups. The last one in chronological order was the deal with Disney, and many others.
Other Level 2 projects may also have a bright future
The arrival of the merger will not be the death of many L2s that have achieved a good degree of popularity and a good level of capitalization. The results of Loopring’s work over the past 24 hours and over the past week prove once again (and this can be verified) that we were right.
In this difficult period for the markets, we are learning to distinguish between those who speak with data in their hands and follow what the markets show, and those who draw wild conclusions. Both Loopring and Immutable X should be monitored in the coming months.
