LUNA and UST are still hot topics and it's brining a lot of notice to crypto. Both bad but also good. A lot is being learned from what happened but one thing that surprised me a bit was how some are talking about the crypto winter now being over.
It's pretty wild to think of it but just two years ago the crypto market cap was only 250 billion and bitcoin was worth just shy of $10,000. That means even if you bought bitcoin two years ago and held it till now with the huge sell off you'd be up about 200% That's crazy when you think about it as that's a 100% gains year over year where else can you see that happening?
Since November of 2021 to early May 2022 crypto was in a downward and hit a state of plateau since the start of the year. This was thought to be a slow down that would drag out and slowly lose value over the rest of Q2-Q3 and possibly Q4 depending on Ethereum and other projects.
However one could look at the crazy train of LUNA and UST that the sell off could in fact be where we would have been at slowly in Q3 moving into Q4. This might have caused the markets to hit their bottom much sooner than what others where predicting and thus creating a huge buying opportunity before the possible end of year rally.
From the looks of it we hit what many feel are all time lows. it was just a year ago we hit these numbers when China decided to ban bitcoin mining and that whole mess happened.
One of the biggest things set to happen which is sure to spark price spikes, news articles and hype of course is the Ethereum blockchain going to PoS(Proof of Stake) this is sure to lock up a good 50% of the supply of Ethereum which means the liquid supply of Ethereum will be about 40% less (there's already some Ethereum locked up in the test net) This most likely will take Ethereums price and bump it 50%+ when this happens or it could be priced in before it happens causing a run on Ethereum.
Some things I wonder about this are...
Will GPUs become crazy inexpensive as people offload them to buy Ethereum or just try to recover costs?
Will the price action start before PoS takes place and even if it does will seeing it finally in action cause a run on Ethereum to get in on the action?
Time will tell for sure as it always does in the crypto markets and the mess with LUNA and Terra are by no means over as talks are now into hard forking the chain and creating a classic version and a new version. What are you thoughts on the crypto winter? Will LUNA set it in faster?
