Altcoins Rise Double Digits After Endgame Roadmap for ETH 2.0 Was Announced

Altcoins Rise Double Digits After Endgame Roadmap for ETH 2.0 Was Announced

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Analysts noted that the reason for the market crash was the use of leverage in the bitcoin derivatives market. Therefore, the market is now recovering mainly due to altcoins.

Bitcoin prospects are bearish in the short and medium-term. Technical analysts are inclined to this point, stressing that the 20-week simple moving average on the bitcoin chart is violated. In terms of fundamental analysis, investors are losing their appetite for risk before the Christmas holidays. However, a number of investors are optimistic about altcoins.

In particular, Polygon (MATIC) and Solana (SOL) outperformed bitcoin even before the market crash. And now they are recovering much faster than BTC. MATIC grew by more than 30% per day, this is due to the venture capitalists who joined the project, including Sequoia Capital India and Steadview Capital, they are ready to invest from $50 million to $150 million by purchasing MATIC tokens. Polygon solves the problem of scaling the Ethereum network to reduce network load and reduce fees.

Experts also note good prospects for Cosmos (ATOM) and Internet computer (ICP). The attractiveness of the Decentraland (MANA) metaverse has slightly decreased. This cryptocurrency began to decline even before the market crash and dropped by almost 40% in five days, from $4.75 on November 30 to $2.9 on December 4, but quickly recovered to a price above $4.

Previously, MANA was one of the growth leaders; from the end of October to November 25, it grew by more than 7.5 times, from $0.77 to a historic high of $5.9. Experts believe that this altcoin is still on a growth trajectory. The reason for the volatility is the small number of implementations. Decentraland is an Ethereum platform that allows users to create and monetize content and applications.

However, the greatest optimism is caused by the dynamics of Ethereum itself, which almost completely recovered after the crash. Experts attribute this to the verbal intervention of ETH co-founder Vitalik Buterin, who announced the endgame roadmap.

Buterin offered his vision for the transformation to ETH 2.0, in which this largest platform for smart contracts will significantly increase scalability while remaining censorship-resistant. He sees the solution in launching a second tier of staking, with low resource requirements.

Obviously, experts and players alike recognized this vision as a good one. Ethereum, which dropped along with the market on December 4 by 20% from the price of $4630 to $3740, has already bounced by 17%. Further rising is highly likely, as the exchanges have recorded the lowest ETH in the last three years, as noted by the research firm Glassnode.