Vitalik Butrin, founder of Atrium and one of the most prominent figures in the digital currency space, said recent market reversals and declining price trends could benefit growth in this area. He believes that with this change of direction, seasonal investors and some fraudsters will leave the market, and developers will be able to focus more on improving Chinese blockchain technology.
According to Bloomberg, Vitalik Butrin, co-founder of the Atrium network, said that falling prices these days, although somewhat discouraging to investors, could benefit the digital currency space.
Many who are deeply committed to digital currencies and focus on building new things will welcome the downturn. They welcome this downtrend, because during the long-term rise in prices, many are obviously satisfied with the market conditions, but such a situation attracts the attention of a large number of seasonal and short-term investors.
Following the record price of digital currencies in early November, the overall market trend has slowed. This change in direction was partly influenced by the changing moods of investors as well as seasonal traders. They predicted that by the beginning of 2022, the amount of monetary incentives offered by governments to improve economic conditions as a result of the crown crown epidemic will decrease. The Bloomberg Galaxy Crypto Index, a tool for measuring the performance of digital currencies using their market value, is now at 45 percent of its highest level ever. During the same period, the price of Atrium, probably the most widely used Chinese blockchain network, fell by 40%.
After the formation of the last widely declining market, dating back to 2018, the space of digital currencies is growing rapidly and skyrocketing. There are currently 12,588 active tokens listed on the CoinGecko website. The currencies that entered the market during the recent uptrend of digital currencies made many people millionaires or even billionaires overnight; But making a profit in the market usually means losing others. Projects such as “pump and throw” prices that are aimed at market manipulation are usually associated with those that have entered the field only for short-term profit.
“At 28, one of the billionaires in the digital currency space,” said Vitalik Butrin.
During the declining markets, many of these projects have been destroyed and you can find out which projects are still sustainable in the long run and have a stable work model, team and community.
Butrin said he was surprised by last year’s jump in the digital currency market, and while he said he welcomed the recent decline, he added that he was not sure a new decline had begun and that the change could only reflect fluctuations other financial markets.
He said in an interview a week ago:
The nature of the digital currency market seems to have changed as a financial market controlled by a very special group of investors, and it has severed ties with traditional financial markets and digital currencies now seem to be one of the mainstays. independent financial markets.
The founder of Atrium said the declining market could help those in the digital currency space who are building projects that focus more on improving technology.
Butrin’s comments came shortly after Wormhole Intermediate Bridge was robbed of $ 300 million during a hacker attack. Earlier, he warned in January of the dangers of using medium-sized stairs. These platforms, better known as mid-range bridges, typically work by receiving digital currency over a specific network and then locking it into a software program called a smart contract. In this way, they can provide an alternative token to the user in other networks.
Butrin has focused more on the scalability of the atrium in recent years. Atrium has long been widely criticized for its high fees and slow network transactions. The Atrium Foundation, led by Vitalik Butrin, is also completing efforts to improve the scalability of the Chinese bloc by implementing an update that is likely to be discussed later.
Butrien said of the scalability of the atrium:
We do not want to face the fact that the Atrium blockchain does not have enough space for everyone when people start using the network again.
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