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Ethereum price has been a casualty from the latest sell-off in the cryptocurrency market. This has resulted in the wiping of at least $150 billion from the market. This drop has seen the asset trade below the highs of $3000 at the beginning of September.
Sell-off causes panic in the market. However, for an experienced trader, this is an opportunity to buy more. Huge price gains and price drops in the crypto markets is a common occurrence. However, the market, in general, has been bullish. A trend that is highly likely to continue shortly.
Ethereum ranks as the number two cryptocurrency in market valuation. A position it has maintained for a long time. To understand why this is the right moment to buy, let us review some of the supporting factors.
One of the major reasons that differentiate cryptocurrencies from other financial assets is volatility. Crypto assets have some of the highest volatility levels in the market. It is very common for a currency price to move 70% in price within a very short time.
Hence, this latest price drop is a normal occurrence considering we have seen Ethereum half in price in the past.
Volatile markets are very lucrative to experienced traders. This is because these markets make huge moves provides great areas of entry and a chance to ride on a trend.
If you can get the correct trend at the right time, cryptocurrencies are very rewarding.
NFT Capabilities (Non-Fungible Tokens)
As the biggest platform supporting NFT transactions, NFT is likely to keep propelling Ethereum’s price into the future.
The uptake and acceptance of NFT keep growing by the day. NFT allows transactions of creations such as art. It is a disruptive concept as it revolutionizes how these transactions used to operate traditionally.
The majority of creators continue to embrace it as it offers better returns, it is more efficient, and helps maintain originality.
Although there are competing platforms offering NFT solutions, Ethereum has the market leadership. A position it is likely to sustain into the future.
Decentralized Finance (DeFI) Solutions
Decentralized finance is a concept of using blockchain to offer various financial solutions. it is enabling the offering of financial services such as lending solutions, saving solutions, and investment solutions in a faster, efficient, and affordable manner.
Normally, financial services are bureaucratic, costly, and highly regulated. This is the market that decentralized finance is disrupting.
To understand how fast this is growing, Ethereum claims to be undertaking the highest number of DeFI projects since its creation. An indication of increasing acceptability of decentralized finance. Growth in uptake is a confidence vote to Ethereum and indicates a long-term value proposition of Ethereum.
I consider the latest sell-off in the crypto market and most importantly for Ethereum as temporary. The outlook of Ethereum in the long term remains lucrative hence don’t be shy to buy more.
The crypto market is relatively new and can only grow in the future. Over and over again this market has proven wrong to those who went short in the long term.