The crypto-currency market has underperformed in recent months, but there could be some upside.
Ethereum co-founder Vitalik Buterin believes that the recent drop in crypto-currency prices could benefit the broader crypto market.
Buterin said that most people welcome the bear market, especially those deeply involved in the crypto currency market. He said;
“They welcome the bear market because when there are these long periods of time where prices go up tremendously as they have – it obviously makes a lot of people happy – but it also tends to attract a lot of very short-term speculative attention. .”
The Ethereum co-founder added that the crypto winter is when most projects’ applications drop, and users can see which projects are sustainable in the long term. He said;
“Most apps drop during the crypto winter, and you can see which projects are really sustainable in the long run, as in both their models, their teams and their employees.”
The last crypto-currency winter was in 2018, with Bitcoin losing more than 50 percent of its value during that time.
Vitalik Buterin said he doesn’t expect the crypto-currency market to behave like it did last year. However, he added that he didn’t know if the crypto would enter another winter or if it was just more volatility.
The broader crypto currency market has underperformed in recent months. The total market capitalization of crypto-currency reached a record high of $3 trillion in November 2021.
However, it has declined by more than 40% since then and currently stands at around $1.7 trillion.
Bitcoin, the leading crypto-currency, has lost more than 40% of its value and currently trades around $37,000 per coin. The decline is not just in Bitcoin, with Ether, Binance Coin (BNB), Cardano, Solana and LUNA all losing more than 45% of their value in recent months.