Ethereum getting better support over traditional market: Bloomberg
The Bloomberg Intelligence Report, published by senior commodity strategist Mike McGlone, provides Ethereum with a bullish thesis on the current macroeconomic environment. McGlone believes the BTC and ETH will top the list as the Russia-Ukraine dispute, potential interest rate hikes, and uncertainties surrounding the markets.
The report also notes that Ethereum has an advantage over traditional assets. In particular, McGlone compared ETH pricing performance with the Nasdaq 100 behind cryptocurrency when the Russia-Ukraine conflict escalated.
Experts say the boom supported Ethereum’s rally in adopting non-fungible tokens (NFTs) and decentralized finance (DeFi) protocols. Although in the digital space, the network supported the development of the US dollar into a stable currency, a digital asset associated with the value of the currency.
McGlone further said:
Around $176 billion on March 2, the market cap of the top six crypto dollars listed on Coinmarketcap is up about 5x from the start of 2021. We see little to stop the market cap from reaching the trillions.
The stable coin growth, market cap, acceptance level, and ETH price should also be followed. As there is a clear link between the stable currency market and the rise in ETH prices.
Compared to the Nasdaq Index, there seems to be a correlation between cryptocurrency and its volatile levels and inflation. McGlone used the volatility in the chart to measure the risk associated with Ethereum.
Ethereum’s 260-day volatility has been generally declining vs. the same risk measure of the Nasdaq since peaking at about 11x in 2018. Closer to 3x now, the relative risk of the nascent technology/asset is poised to keep falling, particularly if the war increases recession risks and stock market volatility.
However, the chaotic bearish trend of Ethereum is unlikely to affect its reception levels and, most importantly, the number of people jumping into its living space. More data from McGlone indicates a 76% increase in the number of developers working on DeFi by 2021.
Although Unlike to the bear market of 2017-2018, experts argue, many ideas and suggestions have been implemented in previous years. Data from DeFi Pulse The total value locked in the DeFi sector is $75 billion, the largest increase in the last two years.
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