V God’s “Bubble Talk” vs Wall Street’s “Value Proposition”: Have you bottomed yet?

Unlike V-God’s last challenge, this time the scenario comes at a time of “tremendous” advances in technology and applications.

V God's "Bubble Talk" vs Wall Street's "Value Proposition": Have you bottomed yet?

Article | Song Qinghua

In a recent interview with CNN Business, Vitalik Buterin (known in cryptocurrency circles as V God) argued that the crypto market is in a bubble.

When combined with the market performance in the past few days, the prophecy really came true. Bitcoin fell to a low of $29,000, with a maximum drop of 32.4%, while Ether fell to a low of $1,753, with a maximum drop of 48%; other mainstream and cryptocurrency coins were decimated, and the total market value of cryptocurrencies fell by nearly one trillion dollars at the most ……

One can’t help but wonder, will V-God take the same stance as Musk? Apparently not. Questioning the overvaluation of cryptocurrencies is something V-God did once in late 2017, when Buterin published a tweet pointing out how little had actually been achieved. The same logic applies this time – many projects that have not actually achieved anything have gained super high popularity and valuation, such as dogcoin.

The only thing is that, like the bubble questioned in 2017, V-God’s bubble has happened, and the fear and desperation of a “cryptocurrency crash” has spread, with many investors giving back all of their gains since 2020, and many more starting the road back to capital in the bull market. Long liquidation amounted to 10,525BTC, a record high; the total lock-up volume of DeFi across the network fell tens of billions of dollars from the peak, the plunge made all kinds of DeFi agreements triggered liquidation, the contract market is in a chain reaction under the trampling frequently ……

However, unlike V God’s last query, this time the scenario is a rational reminder and optimistic expectation at a time of “tremendous” progress in technology and applications – “it feels like cryptocurrencies are ready for integration into the mainstream, whereas four years ago it was the exact opposite picture, when it was completely wasn’t ready. Now cryptocurrency is no longer just a toy. While I’m not sure, it’s still possible that ethereum could eventually catch up and surpass bitcoin in market value.”

Unlike Bitcoin, which is seen as “digital gold,” Ether is a blockchain-based platform for developers to build and operate applications. Apparently, that’s what he’s really getting at. the DeFi track is 100-strong, the NFT market is crying out for attention, and it’s all developing hard but vibrantly in the midst of a congested and poorly efficient Ether network.

After squeezing out the air project bubble, we look at how V-God’s optimism about ethereum fits right in with Wall Street’s insistence on bitcoin.

Data from Glassnode shows panic selling among short-term holders (STH) during this decline, while data from long-term holders (LTH) is trending in the opposite direction, and LTH is continuing to buy the cryptocurrency during the current decline.

Quantitative trader and analyst Lex Moskovski tweeted that 22,917 bitcoins flowed into exchanges yesterday, while the latest tweet indicated that he noticed 16,835 bitcoins being raised from exchanges, suggesting that someone is bottoming out at lower prices. glassnode data further shows the movement of retail and institutional investors. While retail investors are selling off their chip holdings due to panic selling, institutional investors are entering the market.

Combining the attitudes of V-Gods and institutions, this is not the season for bull-bear transitions and bubble bursts. As for whether it is the time to bottom out, investors need to judge rationally. Mars Investment Research focuses on blockchain investment opportunities and quality asset discovery, such as AMM originator Bancor, NFT public chain FLOW, NFT emerging trading platform Elemen …… Mars Investment Research focuses on blockchain investment and financing opportunities, the investment logic of crypto economy and post-investment value creation, but we do not recommend projects Therefore, all descriptions of projects in this article are not recommended as a basis for investment decisions. Mars Investment Research has launched a wealth code group to exchange investment research information in the crypto world in real time, welcome interested friends to add WeChat daqihezip, secret code “Mars Investment Research wealth code”.

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