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Coin Bureau host Pseudonym Guy expressed bullish sentiment towards leading smart contract platform Ethereum (ETH).
Guy told his 2.21 million YouTube subscribers that Ethereum will likely see higher prices this year after rising more than 55% from its 2022 low.
According to popular crypto analysts, the deflationary nature of ETH, caused by its shift to a proof-of-stake consensus mechanism last year, has the potential to trigger a new record high for the second-largest digital asset by market cap during the next bullish cycle. .
“I think it’s likely we will see a higher ETH price at the end of the year. And in the throes of the next bull run, it seems highly realistic that deflation will force ETH above all-time highs.”
Ethereum, which hit an all-time high of around $4,900 in November 2021, is trading for $1,575 at the time of writing.
Regarding the risks facing Ethereum, said Guy,
“There are a number of risks that lie ahead [for Ethereum].
First, there is the general crypto and macro environment. As impressive as Ethereum’s upgrades are, they won’t move the price if the wider environment is on the toilet. Although the market has been improving recently, I think it’s a bit too early to expect this rally to continue.
There are broader concerns around the regulatory status of ETH as well. While I don’t think the safety designation is likely, it’s a tail risk that we have to take into account.
And the other tail risk of course is centralization…
I was also not aware of the fact that Ethereum has competition from other layer-1s. Many are well funded and developing their ecosystems.”
Me
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