Ethereum performed well amid current inflation, Real Vision TV said
Real Vision TV CEO Raul Pal believes that ETH managed not to fall to the lows of 2021 amid rising inflation. The macroeconomist said that the decision of the US Fed to increase interest rates would be even more destructive for the economy, including the digital asset industry.
Pal believes that the popular smart contract platform has weathered inflation relatively well, same as the effects of current political events.
“Let’s face it, Ethereum is down about 40% this year and Nasdaq is down 25%. This is not scary, because Ethereum has not made a new low versus last year, while we’ve thrown inflation and rate hikes and wars and everything at it. So, I think the likelihood is… I don’t think we got the massive blow-off top,” said Pal.
The CEO of Real Vision TV believes in the long-term development of the crypto industry and Bitcoin in particular. At the same time, Pal noted a pause in attracting new investors to the market, explaining this by global inflation.
“The development of the cryptocurrency ecosystem continues. Central banks are building digital currency rails. But we are in a period where retail investors couldn’t afford to dollar-cost average anymore because their pocketbooks got hit by negative real earnings. Their income is not growing as fast as inflation, so, they have to spend it at the supermarket and not on crypto.”
The expert recalled that the serious stock price volatility experienced by Amazon’s early investors did not prevent these investments from becoming very profitable in the long run.
And analysts at Andreessen Horowitz are confident that digital assets are a reflection of the stable growth of the market, which is in the middle of the fourth price-innovation cycle. At the same time, cryptocurrency prices can remain volatile and unpredictable.
“According to our estimates, there are between 7 and 50 million active users of Ethereum today. Compared to the Internet, this is the situation of 1995. Cryptocurrencies are much more than just a financial innovation — they are also social, cultural and technological,” the analysts concluded.