A widely followed cryptocurrency analyst and trader doesn’t believe Ethereum (ETH) could lose its top layer-1 (L1) position anytime soon.
The analyst pseudonymously known as Kaleo tells his 615,900 followers on the social media platform X that the second top-performing digital asset by market cap enjoys a comfortable edge over its multiple competitors.
[adinserter block="1"]The trader believes there’s little chance of ETH losing its top spot in the current crypto market cycle to any L1 project. However, he says the odds of a competitor dethroning ETH could increase after two additional market cycles.
“Gonna put this out there: for as much hate as ETH gets, I still don’t expect any L1 to flip it this cycle. Doesn’t mean we won’t see plenty outgain it. But over the past seven years that I’ve been plugged into this space, I’ve heard countless names called out as the next ETH killer. Ultimately, none of them have unseated Ethereum’s place as the ultimate settlement layer, and I don’t see that changing quite yet. If it were to happen, I think we’re two cycles away from seeing it take place.”
The trader also updates his outlook on Ethereum and other digital assets, suggesting a possible crypto market cooldown before Bitcoin’s (BTC) halving event in April, when miners’ rewards are cut in half.
“I’ve started to contemplate this a bit more and think there’s a solid chance we don’t see an ETH run quite yet, and I’m fine with that. I got caught up in the narrative that other L1s were having solid pumps, so ETH had to. In all honesty, we’re probably closer to July of 2019 in the ETH cycle than we are December 2020. We haven’t even had the halving yet, so there’s no need to really jump the gun and get too bullish too fast.
A bit more cool off in the market wouldn’t surprise me, and honestly would be incredibly healthy. It’d give you a chance for incredible entries on alts that you thought you missed over the past several months before the real bull market starts. If somehow we’re still sent endless green candles in the short term, I obviously wouldn’t hate that either, but I’m prepared to be patient.”
Ethereum is trading for $2,481 at time of writing, down nearly 2% in the last 24 hours.
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