Ethereum (ETH), the biggest altcoin, witnessed a tough phase recently as Bitcoin’s (BTC) upward run completely stole the limelights and inflow of funds. However, Ethereum had recorded a surge of 80% in the one year to hit the price level of $2,300.
What can help Ethereum to trigger a bull run?
Ignas, DeFi researcher Igna in a post shared insights on the potential catalysts for an Ethereum bull run in late quarter 1 or quarter 2 of 2024. It highlighted the role of restaking and was fueled by speculation around the Cancun upgrade and an Ethereum ETF.
Ignas predicts a rally might build for Ethereum compared to other Layer 1 solutions. It asserted that restaking will extend beyond Ethereum and it will offer major opportunities for early adopters among various blockchain platforms.
“We will likely see very high yields everywhere like we haven’t seen since the early DeFi summer days,” Ignas commented, highlighting the expected widespread impact of restaking on yields.
However, he cautions about the challenges that may arise as the number of restaking and LRT (Liquid Restaked Token) protocols, along with their inflation, increases. The concern lies in the potential strain on attention and capital entering the system, expressing hope that the restaking system will mature enough to withstand any deleveraging risks.
Are there any risks involved?
Responding to such concerns around risks associated with restaking, Ignas mentioned the unpredictability of the future. While it appreciates the technological innovation behind restaking. Ignas recognizes the speculative nature of the crypto space, where high-yield chasing can lead to varying outcomes for participants.
Meanwhile, Ethereum’s price is showing signs of a recovery bounce with an aim for new yearly highs. After a brief dip to $2,100 on January 3, ETH quickly rebounded. As per reports, On-chain and technical indicators suggest a bullish outlook for Ethereum, aligning with Ignas’s anticipation of a potential bull run.
Ethereum price is marginally up by 0.9% in the last 24 hours. ETH is trading at an average price of $2,247, at the press time. Its 24 hours trading volume is down by 11% to stand at $11.4 billion.
Ignas highlighted several restaking protocols beyond Ethereum. He shifted the spotlight toward projects like Babylon Chain, Linear Protocol, Octopus Network, and Picasso Network. He added that each project brings unique features and opportunities for users to stake various cryptocurrencies.
