Can Ethereum’s Ecosystem Keep Its Future Bright Amidst This Crypto Winter?

Back in November 2021, Bitcoin reached an all-time high of $69,000, but just in the same way a crypto winter arrived the last time Bitcoin spiked, it looks like we’re on the cusp of another one. 

With several coins down in percentage and destined to remain flat for a while, investors across the globe are beginning to wonder about the prospect of their assets. The last crypto winter lasted around three years, and according to various expert predictions, this one could be set to last even longer.

This isn’t necessarily a bad thing, however. In fact, according to Ethereum co-founder Vitalik Buterin, a crypto bear market could actually benefit the sector. According to him, crypto spikes such as the latest Bitcoin ATH (which resulted in a total market cap of $2 trillion) have led to a number of short-time investors who are simply jumping onto the hype train. 

The problem with these investors is that they are coming into the market with no strategies and no plan, meaning the input they give to the community is inconsequential and their reaction to volatility is potentially damaging. The crypto winter, for Buterin, is a chance to cull speculative investors, useless applications and projects which are essentially unsustainable. As well as this, it also allows long-term investors to hone their own strategies and reconfigure portfolios, leading to a healthier crypto market once it gets back on track. 

But What Are Ethereum’s Investors Coming Back To?

The only issue with Buterin’s advocacy of the crypto winter is the unpredictability of the season it is heading towards. Of course, while it is important to put a positive spin on a cold patch, there is no benefit to applications being culled and long-term investors levelling up if there is no bull season to charge into.  

Can investors expect, for instance, that the price of Ethereum will rise and the platform will maintain the same wealth of opportunities after a prolonged period of drought? For the entire market, in fact, surely there are only so many punches an industry can take before it fails to stand back up on its own two legs. 

Ethereum’s Ecosystem Is Something Different

For those concerned about platforms like Ethereum in the aftermath of this particular winter, Buterin’s words are ultimately a positive sign of where things are headed. While the crypto market is volatile and winters like these (as well as the market state by the end of them) are unpredictable, there are certain things in the present which can formulate a view of the future.

Over the last few years, Ethereum’s ecosystem has developed itself into one of the market’s most exciting networks. While Bitcoin uses its blockchain predominantly to record and verify transactions, Ethereum uses its blockchain for anything which can be programmed.   

In many ways, the platform’s native token Ether is just a small part of what Ethereum has to offer as its ecosystem is full of projects and programmes which are rapidly being developed. Whether it’s Maker, Slock It, Uport or Augur, there are several roots to Ethereum’s platform which are steadily spreading and manipulating the way the internet is going to work. 

These projects range from autonomous bank makers to cryptographic digital identity solutions to decentralised prediction market platforms. In short, Ethereum has become a platform to welcome and harbour the spread of DOAs (decentralised autonomous organisations), which similarly creates a vision of an entirely decentralised web which will revolutionise the way we live. 

Ethereum Has Steadily Been Building A Fortress

The revolutionary ecosystem that Ethereum has built for itself is subsequently propped up by the incoming switch into Ethereum 2.0. While Ethereum wishes to make blockchain a constant presence in everyone's life, its own blockchain is morphing to become far more efficient, safe and sustainable. 

In terms of ETH, this move (which is being dubbed the merge) will undoubtedly keep the coin strong amongst the turmoils of crypto’s winter and is positive for the network as a whole. As more and more users turn to Ethereum as a market leader in sustainability and efficiency, so too will more users create and invest in the organisations present in Ethereum’s ecosystem (which is especially encouraging given Buterin’s words on a proactive, sustainable project influx after the winter is over).

Essentially, if any blockchain platform has a chance of coming out of the winter relatively untarnished, it is Ethereum. Over the years, it has been steadily building a fortress full of opportunities, and, with the facelift it is due to receive once the merge is completed, it is looking like a pretty luxurious place to shelter from the cold and bathe in the light once winter is over.