Crypto is a bubble, says Vitalik Buterin after speaking in a CNN Business interview, commenting his views on the market crash and the state of the crypto industry as of late as we read more in our latest Ethereum news today.
Buterin had a huge chunk of his personal wealth erased over the past week but he said he is not concerned about the market crash stating that we already had a few of those before. He likened the current situation to a bubble and stated that knowing when the bubble will pop is hard to predict because it could have already happened or could happen tomorrow. According to him, we already had three of the big crypto bubbles and often enough, the reason that the bubbles end up stopping is that some of the events happen and make it clear that the technology is not there yet.
Buterin’s Ethereum address now holds 325,000 ETH worth an estimated $895 million at the current prices which is a 35% drop from the peak value of $1.4 billion on May 12. Comparing the current situation with the one during the last bubble a few years ago, Buterin stated:
“It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago. Crypto isn’t just a toy anymore.”
The narrative was quite different for ETH this time around with major institutional players entering the market and pushing the prices up. Some industry observers are now blaming leveraged trading on derivatives exchanges for the latest market downturn. Buterin added that he is not sure but there is a possibility that Ethereum eventually caught up and could surpass BTC in market value with the current market capitalization for ETH was $318 billion which is 42.5% of the BTC market cap.
Regarding the “Elon Effect” Buterin stated that it is something new to the scene and that his influence will diminish soon:
“Elon Musk tweeting is something that the crypto space has only been introduced to for the first time literally last year and this year. I think it’s reasonable to expect a bit of craziness. But I do think that the markets will learn. Elon is not going to have this influence forever.”
Regarding the DOGE shilling, Vitalik Buterin said that Elon Musk has no malevolent intent with the recent developments. Despite saying that crypto is a bubble, Ethereum recovered 9% and its price touched $3K and was not able to break resistance there, falling back below $2700 before the morning recovery session.
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