Fred Wilson, co-founder of the Union Ventures Fund, showed that he believes in Ethereum’s growth potential this year. In his statement on January 3, Fred thinks that many web3 projects will fail in 2023. Here are the predictions of the famous CEO for altcoins…
CEO expects drop for these altcoins
Fred Wilson of the Union Ventures Fund focused on web3 projects involving various altcoin projects. The expert thinks that some cryptocurrencies focused on web3 will see a deep selling pressure in the first half of 2023. According to Wilson’s most recent interview, some funds are now bankrupt. Many will therefore have to liquidate their assets. Funds will also need to sell various assets to minimize their losses. Wilson expects depreciation as he thinks that the coins to be preferred for selling are web3 coins. Because the sale of the coin means a decrease in the price.
He points out that especially web3 projects that do not achieve product-market compatibility, do not have real token economy and do not offer new features are likely to encounter liquidation. Wilson stated that many web3 projects fail to meet these clauses. It is therefore possible that we will see many of them continue to falter in 2023. Wilson didn’t specifically point to a specific project, but you can see the most popular and major web3 coins below:
The bullish sentiment for Ethereum cannot be ignored
On the other hand, Wilson expects a serious rise for Ethereum. The reason for this bullish sentiment was that Fred believed Ethereum had the best underlying economic model of any web3 existence. But there were other reasons why Investors felt optimistic about ETH. One of them is the increasing number of addresses on the Ethereum network. According to data provided by Glassnode, the number of non-zero addresses has increased significantly over the past few months, reaching an all-time high of 92 million addresses.
Along with the addresses, the validators on the Ethereum network have also grown. The number of validators on the network increased by 2.22% compared to last month. In addition, the revenue generated by these validators has increased by 1.65% in the last seven days. Validators were not the only group of people to trust Ethereum, as traders were also optimistic in favor of ETH. According to data provided by Coinglass, the number of long positions held in favor of Ethereum has far exceeded short positions by a large margin. Currently, 65.82% of traders were holding long positions.
The percentage share of Ethereum held by major addresses has seen a massive increase over the past two weeks. However, this interest of whales was not enough to positively affect the price of ETH. The decrease in price caused the ratio of market value to realized value (MVRV) to decrease. This meant that most Ethereum owners would lose if they sold their holdings. cryptocoin.comAccording to data, ETH is currently changing hands at $1,250, with an increase of 2.8 percent.