Financial markets tumbled at the end of the week after Fed Chairman Jeremy Powell took a tough stance during Jackson Hole’s annual event. During this much-anticipated event, Powell said that the Federal Reserve will keep raising interest rates until inflation is completely eliminated.
This means that money will run away from risky assets, at least in the near future. However, if you are looking to play in the crypto markets now, some cryptos may show some resilience even as the market is bearish. Here are some cryptocurrencies that may hold up well under the current market conditions.
While the broader crypto market is likely to be affected by a bearish cloud in the financial market, Ethereum (ETH) has a good chance of pulling off a surprise rally in early September and possibly for the rest of the year. This is because the upcoming Ethereum merge is a big deal and will change how Ethereum operates in a very big way. The impact of the merge on Ethereum’s tokennomics is one of the biggest triggers that could see Ethereum performing well regardless of the Fed’s aggressive stance.
In terms of how big a deal this is, one needs to consider that this cryptocurrency halved after the Ethereum upgrade of August 5, 2021, when the rest of the market was still weak. Ethereum was going up, and by November 2021, it had made a high of $4800. If history is anything to go by, this is a cryptocurrency to watch.
If Ethereum is likely to attract investors’ attention in the coming days, you also need to consider cryptocurrencies that will directly benefit from the upcoming Ethereum merger. There is no one different from Polygon (MATIC) in this case. Polygon is an Ethereum layer-2 cryptocurrency that already has a large ecosystem of cryptocurrencies building on top of it. As such, if the merge is successful, you can expect to see some level of activity on the polygon, regardless of how the market may be trading at the time.
One of the major reasons behind the Ethereum shift to Ethereum 2.0 is to reduce costs and increase speed. Following the merger, the trading volume for the Ethereum token is likely to increase. This means that platforms that allow trading of Ethereum tokens are likely to experience a surge in demand. One of the most established Ethereum token trading platforms is Looping (LRC). As there is already strong demand for the token on Looping, and with the drop in trading fees, the LRC token could also rise. This is because Looping is the token that drives the Looping ecosystem. The more activity, the greater the potential price increase.