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If we are trying to celebrate Christmas, we need to bring out some green to balance out the red this morning.
Thomas Perfumo of Kraken indeed He warned us last week We may see some pullbacks before the holidays, and that appears to be true now. Whether we see a sell-off or not is another story.
But I'm not actually here to talk about markets. Or should I say I'm not talking about what the markets do today.
Earlier this week, Coinbase Institutional released its market forecast for next year.
David Dong, head of research, noted in the note that the 2024 uptrend showed some "stark" differences from previous cycles, but the overall landscape remains "promising."
Otherwise, VanEck, in its forecast, said it believes the bull market will continue next year, peaking at around $180,000. After that, they expect a 30% bounce from Bitcoin, and altcoins could see double that.
“A recovery is likely in the fall, with major tokens regaining momentum and reclaiming previous all-time highs by the end of the year,” Van Eck wrote.
But even if we see a decline, Coinbase Institutional was very bullish in its note.
“As the regulatory and technology landscape evolves, we expect to see significant growth in the cryptocurrency ecosystem as broader adoption pushes the industry to realize its full potential. This will be a pivotal year. Breakthroughs and developments in 2025 may help shape the trajectory,” Dong wrote. Long term for the cryptocurrency industry for decades to come.”
Let's focus on the question I've been asking a number of people now: Can ETH will return next year?
ETH has been lagging behind, watching from the sidelines as both Bitcoin and Solana hit all-time highs.
In the long term, Duong and his team believe that the growth of the Ethereum L2 ecosystem is a “blessing,” but it is not clear right now whether this will be enough to help ETH in the short to medium term.
21Shares, in its forecast report, believes that Solana will continue to eat Ethereum's lunch.
“While we don’t expect complete ‘volatility,’ Solana is poised to outperform and take more market share from Ethereum through improved user experience and infrastructure,” 21Shares analysts wrote.
They also believe that Ethereum is poised for a “revenue renaissance” starting next year.
“Web2 companies like Robinhood and PayPal, along with traditional financial entities like Visa, will likely launch their own L2s, taking advantage of cost efficiency and scalability to open new revenue streams and serve the growing demand for decentralized applications,” they said.
So maybe things don't seem so bad after all.
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