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Is It Good To Buy ETH in 2023?
Macro factors like galloping inflation, Fed interest rate hike, oil and food crisis, Ukraine-Russia war gave ripples down the spine to crypto investors in 2022. However the silver-lining beyond the dark clouds have started to surface after bank busts in 2023 and Ethereum’s new upgrades making the next market buzz around. With that being said, Eth has been rocking and rolling above the $1500 levels for quite some time despite the market panic.
The recent Capella and Shanghai event have given fresh impetus to Eth’s demand and we should be going long on ETH for 2023 for the given few reasons;
Top Reasons To Invest in ETH in 2023
The Merge Catalysts
How does an asset derive its value? It derives its value through the utility and scarcity it creates. Post the Merge event, in contrast to the number of ETHs which were produced prior, the numbers have dropped significantly. For example, in comparison to the PoW consensus that created 13,000 Ether per day, the post Merge scenario has brought those numbers to 1300, allegiance to EIP 1559 that burns a part of the gas fees after each block.
With that said, ETH is slowly inching towards becoming ultrasound money. The major trade-off is that at the backdrop of shady practices by the TradFi, users might pivot to DeFi, and Ethereum holds majority of the DeFi, setting a new narrative as a go to ecosystem for building the next face of finance.
Layer 2’s on Fire
Undoubtedly high gas fees were a pressing challenge that the Ethereum chain has dealt with ever since its inception. We have had our share of challenges when the crypto kitty event happened. However Vitalik Buterin took cues from such incidents and moved towards layer 2. Optimism and Arbitrum provided the much needed leverage to Ethereum; however, their computational integrity despite being fast and efficient has often been questioned.
On that note, ETH’s pivot to ZK or Zero Knowledge Proof systems might set-up a new narrative. Vitalik has already said that Sharding and the Merge are watershed moments in ETH’s journey but it will be the layer 2’s that shall carve a new way ahead for massive adoption. Polygon, which is the preferred layer 2 scaling solution for Ethereum, has recently launched ZKeVM which shall give more leverage to such claims. Hence setting a positive narrative for ETH to rage inferno in the coming days.
