With the cryptocurrency market showing signs of a bullish continuation on Jan 15th, Raoul Pal, CEO of Real Vision Group and avid Bitcoin (BTC) investor, is optimistic about the price of Ether (ETH). Pal also says he wants to add “higher risk alts”.
Is there a low season coming?
After Bitcoin surged above USD 42,000, many alternative cryptocurrencies or altcoins have seen strong growth, which historically coincides with Altcoins’ good first quarter performance.
The rally in altcoins has been led in part by the dynamism of Ethereum. After breaking a major resistance level of $ 600, ETH continued to climb above $ 1,000.
ETH is about to hit an all-time high of over $ 1,400up 60% in the first two weeks of 2021.
Possibly due to the improvement in market sentiment surrounding ETH, Altcoins have also done particularly well over the past week.
As Cointelegraph reported, Large-cap altcoins like Polkadot (DOT) and Cosmos (ATOM) have made big gains against both Bitcoin and the US dollar so far in January.
At the same time, Decentralized financial tokens (DeFi) such as Aave, Yearn.finance and SushiSwap have far outperformed both Bitcoin and Ether in the past two weeks;; there is Data confirming a steady increase in mood and activity on social networks over the past few months.
Meanwhile, The DOT and ATOM uptrend could be fueled by the DeFi token frenzytaking into account the fact that the demand for alternative blockchain networks has increased.
The Ethereum blockchain network has become increasingly congested recently User activity for DeFi protocols increased dramatically, increasing fees in the process.
Protocols like Aave, SushiSwap, and Synthetix have grown rapidly since Novemberand propel Aave and Synthetix to billions of dollars in market cap.
What’s next for ETH and Altcoins?
On January 7th in a tweet thread, Pal said he believes ether could hit $ 10,000-20,000 if it followed the same cycle as Bitcoin.
Pal noticed Metcalfe’s lawThis specifies that the impact of a telecommunications network is proportional to the square of the number of users connected to the system to support an optimistic case for Ether. Wrote::
“Oops … The ETH looks like BTC, the Metcalfe law seems to be the price key for both ETH and BTC … But the market capitalization of ETH is growing faster than that of BTC (from the first million active addresses). Oh shit really? Is the ETH identical in the price structure to the BTC if it had the same number of active addresses? But, but, I thought it was a worthless piece of shit. ‘”
Yes, ETH could reach USD 20,000 this cycle … (same as last BTC cycle as ETH market capitalization will be higher) pic.twitter.com/LC8VffAqwh
– Raoul Pal (@RaoulGMI) January 7, 2021
Although there is no specific correlation between ether and the rest of the altcoin market, As Ether grows to a trillion dollar blockchain protocol, large projects based on Ethereum could grow proportionally.
DeFi tokens in particular would likely benefit the most from the network effect and rapid growth of Ethereum. if it grows at the rate of Bitcoin in 2016.