A widely followed cryptocurrency analyst and trader does not believe Ethereum (ETH) could lose its top-level (L1) position anytime soon.
The analyst known by the pseudonym Kaleo tells his 615,900 followers on social media platform X that the second-best performing digital asset by market capitalization enjoys a clear advantage over its many competitors.
The trader believes that there is little chance of ETH losing the top spot in the current cryptocurrency market cycle to any L1 project. However, according to him, the chances of a competitor dethroning ETH could increase after two more market cycles.
“I’ll put this out there: As much hate as ETH gets, I still don’t expect any L1s to reverse it this cycle. That doesn’t mean we won’t see many more of them. But over the past seven years that I’ve been in this space, I’ve heard countless names invoked as the next ETH killer. Ultimately, none of them have ousted Ethereum’s place as the ultimate settlement layer, and I don’t see that changing just yet. If it were to happen, I think we’re two cycles away from seeing it happen.”
The trader also updates his outlook on Ethereum and other digital assets, suggesting a possible cooling of the cryptocurrency market ahead of the Bitcoin (BTC) halving event in April, when miners’ rewards will be halved.
“I started thinking about it a little more and I think there’s a solid chance we don’t see an ETH round yet, and I’m fine with that. I got caught up in the narrative that other L1s had solid pumps, so ETH had to In all honesty, in the ETH cycle we are probably closer to July 2019 than December 2020. We haven’t had the halving yet, so there’s no need to rush and get too bullish too quickly.
A little more calm in the market wouldn’t surprise me, and honestly it would be incredibly healthy. It would give you the chance to get amazing rumors on the alternatives that you thought you had missed in the last few months before the real bull market begins. If we somehow still get endless short-term green candles, of course I wouldn’t hate it either, but I’m willing to be patient.
At the time of writing, Ethereum is trading for $2,481, down nearly 2% over the past 24 hours.