Ethereum will successfully face all ups and downs of the crypto market.
Despite current harsh conditions, Vitalik tells Fortune, that he is confident Ethereum will thrive to become a successful blockchain system.
Since the first crypto came into existence, the markets have always had their ups and downs. It’s a little over a decade now since Bitcoin went live. So far, there have been a few bear markets and bull runs. These are normal market dynamics that a healthy industry must experience. Ethereum is one of the top cryptos that has gone through such seasons.
According to its founder and creator, Vitalik Buterin, the current market-wide downturn ushering in a bearish atmosphere isn’t the first, and it won’t be the last.
“Crypto has had ups before, and it has had downs before, and it will have ups and downs again,”
Ethereum has endured through a few of these. Ethereum is a vast blockchain system, host to a myriad dApps and even interconnected with other chains. It’s currently the largest host of other protocols. Its native crypto, ETH, is currently the second largest by market cap.
Why Downturns Are Important
Vitalik opines that market downturns are an integral part of a market’s growth, especially in the blockchain sector.
During these times, various developer teams get the chance to look around and see what’s going on within the market as well as their competitors. They learn a few things about how to strengthen their ecosystems. They see the faults in other systems and take steps to seal the flaws in theirs. For example, during this downturn, platforms like Celsius and 3AC have experienced their hardships. This can be taken by others as a lesson and implemented measures to avoid similar problems from befalling them in the future. The collapse of Terra is another hard lesson for the entire crypto and blockchain industry.
In Buterin’s view, the downturn can be used to tailor strong systems that will thrive during the good times and endure the next downturns.
“The down periods are certainly challenging, though they are also often the periods where the most meaningful projects get nurtured and built.”
Billionaire Mark Cuban seems to support this notion. Cuban tells Fortune: “Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”
Vitalik said that although there are a few setbacks in the industry, the positives outweigh the negatives. He mentioned the ease of sending money across borders currently being enjoyed by people across the world using cryptocurrencies.
Ethereum Will Prevail
While ETH hasn’t been spared by the current price drop, its resilience has kept it alive and well. Over the weekend, the coin’s price fell below the $1k mark but has now recovered to around $1,100 at the time of this writing. However, the coin is still down by over 75% compared to its ATH of over $4,800 back in November 2021.
Still, founder Vitalik is hugely optimistic about Ethereum’s future:
“Ethereum will continue becoming a more mature and successful blockchain ecosystem that is ready to meet the hopes and dreams that millions of people have for the crypto space over the next decade.”