bitcoin
bitcoin

$98569.176448 USD

5.71%

ethereum
ethereum

$3496.387817 USD

4.74%

tether
tether

$0.999648 USD

0.09%

xrp
xrp

$2.328241 USD

7.03%

bnb
bnb

$695.134469 USD

1.92%

solana
solana

$196.090612 USD

5.77%

dogecoin
dogecoin

$0.334909 USD

7.27%

usd-coin
usd-coin

$1.000266 USD

0.03%

cardano
cardano

$0.936346 USD

6.08%

tron
tron

$0.257679 USD

3.02%

avalanche
avalanche

$41.221851 USD

11.37%

chainlink
chainlink

$24.763707 USD

9.54%

toncoin
toncoin

$5.767092 USD

4.68%

shiba-inu
shiba-inu

$0.000023 USD

6.18%

sui
sui

$4.643090 USD

8.42%

Cryptocurrency News Articles

Ethereum's Lackluster Performance in 2022: Vitalik's ETH Sell-Off, Unexpected Effects of Upgrades, and Absence in 'Emerging Trends' Raise Concerns

Oct 28, 2024 at 07:04 pm

Ethereum was once regarded as the 'blue-chip asset' of the crypto market, and it was widely believed that its price would reach new heights in the future

Ethereum's Lackluster Performance in 2022: Vitalik's ETH Sell-Off, Unexpected Effects of Upgrades, and Absence in 'Emerging Trends' Raise Concerns

Once regarded as the 'blue-chip asset' of the crypto market, Ethereum was widely expected to reach new heights, potentially even surpassing $10,000. But ETH's performance since 2022 has left many scratching their heads. Does this spell trouble for Vitalik and Ethereum's future? Let's unpack the reasons.

1. Expectation vs. Reality Gap

Major upgrades to Ethereum over the past two years have fueled optimism about its future, especially regarding the 'deflationary' impact on ETH supply. But the actual market performance has been surprising. Despite scaling and upgrades, ETH has lagged behind BTC and other tokens like Solana.

3. Upgrades' 'Unanticipated' Effects

The Ethereum Merge and EIP-1559 have reduced ETH issuance, but the latest Dencun upgrade, while reducing the cost of writing data to the main chain, has indirectly reduced ETH's income sources, affecting the token's appreciation potential.

4. Vitalik's ETH Sell-Off Sparks Debate

Recently, Ethereum founder Vitalik sold some ETH to support development. Despite the small amount sold, the market reacted negatively. Some investors believe this could indicate a lack of confidence from Vitalik in ETH, although he has stated that the price of ETH is not a priority for him.

5. Absence from 'Rising Trends'

Many emerging trends in the current market, such as AI, RWA (real-world assets), and memecoins, have chosen platforms other than Ethereum. While Solana dominated the memecoin space, many new AI projects (like Fetch, TAO) and RWA projects have opted for more suitable independent networks and underlying architectures. Despite Ethereum opening the door to decentralization, other networks are leading the latest narratives.

6. ETH's Future Value Fate

Remaining a cornerstone of the decentralized finance (DeFi) ecosystem, ETH currently accounts for over 55% of the total locked value. But with L2 scaling solutions, future Ethereum may face a dilemma like the $ATOM token in the Cosmos ecosystem, where the ecology thrives while the token value is not fully realized.

My Personal Outlook

I once believed strongly that ETH would reach $10,000, but I've become more skeptical. ETH still comprises 30% of my investment portfolio, but I may gradually sell off some assets during the next bull market, holding the rest to observe its long-term performance.

Conclusion

ETH's network utility and ecological status remain strong, but recent performance has sparked market concerns. Despite ETH's industry leadership, its failure to align with emerging trends could gradually erode its dominance. While Ethereum maintains a first-mover advantage in the decentralized space,能否在L2发展和其它叙事浪潮中找到新平衡,将决定其核心价值能否持续。

#ETH #以太坊 $ETH $SOL $SUI

News source:www.binance.com

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Dec 25, 2024