According to Vitalik Buterin, co-founder of the Ethereum blockchain, the drop in cryptocurrency valuations has been dubbed “another crypto winter” by investors. Buterin emphasised in an interview that “people who are deeply into crypto, especially those who are developing stuff, a lot of them prefer a down market.” Investors prefer bear markets because when there are these protracted periods of prices moving up by large amounts, it clearly makes a lot of people happy, he added. During the time since Covid, the native currency of the world’s most popular blockchain, Ether, has dropped by about 40%, making it less valuable.
Since the last “crypto winter” in 2018, the sector has grown exponentially. Buterin stated that the massive amount of money spent during the last crypto bull run may have resulted in many stories of overnight millionaires or billionaires, but one person’s profits in crypto are frequently also another person’s losses and sorrow. “The winters are when a lot of those applications fall away and you can see which initiatives are genuinely long-term viable, like in their concepts, teams, and people,” he explained.
However, Buterin, who has stated that he is “surprised” by how the market has changed since last year, is unsure whether crypto has entered another winter or if the sector is simply replicating the volatility in larger markets. He also stated that a crypto winter might assist individuals who are developing crypto ventures by focusing on strengthening the technology.
Buterin’s Ethereum Foundation is in charge of the most recent projects to improve the blockchain’s scalability, including some of the most important changes in the history of Ethereum.