Crypto veteran Alex Krüger provides a comprehensive summary of recent developments in the crypto market, including the role of Bitcoin ETFs, Ethereum’s performance, and the rise and fall of Solana.
Ethereum (ETH) disappointments, Bitcoin ETF “entirely” drives cycle
According to Krüger, the crypto market’s recent surge has been primarily driven by the approval of Bitcoin ETFs. However, Ethereum’s performance has been underwhelming, despite stakers and airdrop farmers reaping benefits from the second largest blockchain.
Krüger also noted that Solana initially emerged as the preferred blockchain for retail traders, even surpassing Ethereum. However, it couldn’t handle the increased traffic and eventually collapsed, leading to Coinbase’s L2 Base taking its place.
Despite the dominance of meme coins in early 2024, most have plummeted to zero, though some continue to outperform the market, establishing themselves as a viable asset class.
Krüger also pointed out the low inflow of retail traders in this cycle, attributing it partially to the aftermath of Bitcoin’s drastic collapse in 2022. This resulted in many crypto enthusiasts missing the launch of the Bitcoin ETF.
Cycle not over, expert says
Krüger expressed concern over the market being flooded with “scammy” meme coin launches and founders seeking quick profits through new altcoins:
The market started to get flooded with both scammy memecoin launches and cash-grabbing founders around February. These founders focus on making a quick buck and generating short-term hype rather than on longevity.
Despite the overvaluation of many L2s in the market, Krüger believes that the current cycle is far from over.
