• Sun. Jul 14th, 2024

Speculators Still Rule The Crypto Market

Alvin Hayes

ByAlvin Hayes

Sep 9, 2022
Trade Galactica assets of trading

The whole motto of the Bitcoin community is to use DCA and hold on to their purchased coins indefinitely until it increases in value. The strategy seems to be based on unsubstantiated optimism that Bitcoin will grow forever and skyrocket after this crypto winter. While it is more than possible that the token will reach its promised $100K, it will be the new resistance level for a very long time. Potentially, forever.

Vitalik Buterin recently said that he believes that cryptocurrencies will eventually become as stable as gold with low short-term volatility and reliable yet slow growth that could rival inflation of fiat money. Many experts also think that we will reach such stability when cryptocurrencies will be widely adopted by many nations. Right now, we still live in a world ruled by speculation, FOMO, and FUD.

One of the brightest illustrations of this theory is the recent surge of Terra Luna Classic to a new height that dwarfed Terra that was formed after the hard fork following the disastrous crash of the asset thanks to a massive capital attack that revealed a critical vulnerability of the network to external manipulations and the weakness of its fundamentals. However, that crash turned out to be a positive event for the community that took over right after.

The recent news story covered the sudden appearance of Terra Luna Classic among the top30 tokens. As of the time of writing, the token is ranked #26 with a $3.2 billion market cap which is 12.6 times bigger than that of Terra. Despite the arguable failure of the anti-inflation burn mechanism implemented by the Classic network, Luna Classic is still performing better than many other crypto assets. It strongly indicates that the price is driven by speculators and overly ambitious investors. There are no fundamental reasons for it to go up.

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Don’t get us wrong, we are happy that Luna Classic is recovering so well, but there must be more substance behind such price surges. We need stability and reliability — two reasons why institutionalized investors usually bring their capital into any market. We must have more growth driven by fundamentals.

Alvin Hayes

Alvin Hayes

Alvin Hayes is a seasoned news writer known for his engaging storytelling and thorough research. With a commitment to accuracy and a captivating writing style, his articles provide readers with insightful and well-rounded perspectives on current events.

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