According to predictions from industry leaders, Ethereum is poised for growth in 2023. Cobo and F2pool Co-founder Discus Fish have stated that the Ethereum Foundation’s announcement that the Shanghai upgrade in March is set to happen on time is a strong stimulus for the industry.
Additionally, many L2 projects, particularly those based on ZK technology, have announced plans to launch testnets or mainnets in Q3 or Q4 of 2023.
The Ethereum Foundation has a history of making major strategic decisions at opportune times, such as during favorable macro environments. March could be a significant moment for the industry as a whole.
Factors Driving Ethereum Growth
One major factor driving Ethereum’s growth is the absence of major potential risks within the industry. Additionally, the foundation’s tendency to make major strategic decisions during favorable macroeconomic conditions, as seen with previous upgrades such as 1559 and the merger, suggests that March could be a significant turning point for the cryptocurrency.
Another driving factor is the cryptocurrency market cycle, which tends to be bull-long and bear-short. The bear market stage, which began in March 2020, is nearing its end, and the industry is now in a stage of restoring confidence and seeking new narrative logic.
Moreover, the upcoming halving cycle of Bitcoin, set to occur in less than 470 days, could also play a role in Ethereum’s growth. Historically, halving cycles have been followed by a new round of market growth. Additionally, Discus Fish predicts market hot spots in Q2 and Q4 of 2023, accompanied by the interest rate cycle and internal factors within the industry.
However, Fish claimed that the bottom for this round of bear market has likely already appeared, and a large upward trend is expected to appear relatively densely next year, as long as there are no major adverse black swan events or external macro factors worsening.
Cobo and F2pool Co-founder Discus Fish said:
Looking back at the entire industry in the past year, we have passed the most painful or rapid-decline stage in this bear market, and are now in a stage of gradually restoring confidence, seeking new narrative logic, and consolidating the market.
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