Many are questioning the future Ethereum. The second largest cryptocurrency in market capitalization, in fact, has made a stringent journey in recent times.
In the current growth cycle, the property has reached 000 4,000 last December, but since then more than 60%. Data shows that the Ether Bitcoin reduces more than 70% of the value from 2021 (previous bull market).
Despite pessimism, I see the reasons I believe that the token is still surprised. Good than that: When it rebounds, most ecosystem follows projects and can be key pieces in this recovery.
- Get membership Learn about the future of money newsletter and money, investments and the future of your pocket.
What’s going on to Ethereum
The network may also be at a square, but the elasticity should not be ignored. Between 2018 and 2020, Ether also faced a sudden waterfall to shoot more than 600% in 2021.
In addition to the gross context, the market is usually aggressive and most importantly, I see three major aspects that contribute to risk assets, etherium slowdown:
The rule of threatening
In the previous high market (2021), the network intelligent contracts dominated without almost rivals. Today, Solana has emerged as a strong alternative, especially in the ULA attendance activities (as in the field of technical innovation, in the field of technical invention, in the field of Memecines).
- Free: Find the best 3 strategies to invest in Bitcoin
Want to know how to invest in crypto? Learn the strategies recommended by experts!
In Solana, users benefit from faster and cheap transactions, an important part of the DEX volume, extracted decentralized brokerages, which once flowed to Ethereum.
Internal tensions and direction disputes
Backstage, the mood there is not stable. Most differences in the society have emerged, revealing uncertainties about the future of the project. Open discussions with the leadership of the Atherium Foundation, Vitalic Buterin, have intensified, and some developers, including the exit of some developers, raise awareness.
- The easiest and safe way to invest in crypto. At Mint you will discuss some clicks and BTG Pactual Company’s security. Buy the world’s largest cryptos in minutes directly through the app. Click here to open your free account.
Transaction rates at the historical level
Everything we have seen above, joined the current tornado in gross economics, contributed to the reduction of activity on the network and the result of the gas rates – the sums of users to verify network transactions. Rates reached the historic minimum of 2024.
This scene weakens every inflation mechanism of Ether, which depends on the shooting of the tokens by EIP-1559 to reduce the supply.
I believe in why
I still have the perfect reasons for keeping my place in Ether and trust new praise in this cycle.
Different leadership
Despite the development of solana, the Atherium follows the most strong and safe platform for intelligence contracts, as shown in the following chart, over half of the total value blocked in the deficiency in the deficiency.
Returning institutional appetite
A control of the back – “-Concance movement is likely to be a trigger of the new high phase. SEC, US Securities Commission, Ether is considering allowing Ether ETFs to include ETFs – it can completely change the scenario.
And why?
Today, those who invest in Ether through ETFs do not have access to income, which is possible through stacking. This limits the attraction of these products, especially for companies that seek return on capital allocation.
If the green light is given to stocking, the funds will provide additional profitability, opening the doors to the massive entrance into the environmental system.
Rather than leverage demand, the movement of the property puts positive stress on the price of the property, the impact of the shortage and the restoration of the main players on the future of the project.
Pectra update
In the infrastructure sector, the network is preparing to take an important step with the arrival of the new update, the hard fork pectra arrival, now scheduled for May.
The Dencan is considered as the largest event from the fork, the change package developers and consumers aimed at the faster, scalable and naturally converting to developers and customers.
Some progresses acceleration in the implementation of clever contracts, relaxation of the payment of gas fees, which can be done with multiple tokens and new breath for rewards intended for validators.
In addition to performance gains, it helps to reduce pectra management costs and strengthen the network role as an effective basis for the Network’s role, especially at the time of debate about network scalability.
Goes along the ecosystem: Put surveillance on the altlaier
If we really have another ether’s loud bread, it will not be alone. Projects that are part of your ecosystem, especially the network’s most complex problems, will be directly beneficial.
One of the closest I follow is Altlayer (ALT).
Altlayer is a protocol that faces a scalable through technology called Roll Ups. It makes transactions cheap, fast and safe, problems that need to solve the network to regain space.
If you follow the previous wheels, if you see what happened to projects like Polygon (Matic), Arbitrum and Optimes, you know what I am talking about. Every time Ethereum gets traction, turbocharging its performance explodes with praise.
The Altlayer is still at the beginning of its trajectory. Unlike other protocols that are more established, it is not yet a big price, which increases its multiplication capacity for the new discharge of ether.
Also, before any hype, the Altlayer has interesting fundamentals and good operations in the real world – I think I am desperate in any project with a potential for constant admiration.
The last before the wheel is over?
No one has crystal ball, but there are models in the repeated crypto market. And one of them, with solid foundations and living ecosystems, rarely get out of spotlight.
I believe that Ether still has the last letter in this cycle. It may not be the same explosion that we’ve seen in 2021, but I see the room to recover interesting. If this happens, those who have kept the Ether, but also in a project such as Altlayer, get fruit, which makes this wave valued at surfing.
The current situation is challenging, but it is also a reliable test. I still believe in the project, I am in place and I will follow carefully with innovations like Altlayer, which provides more returns when Ether finally wakes up.
If the story is really repeated, this may be the last great opportunity before the end of the wheel and will be rewarded for those who wait patiently.
Follow the future of money on social networks: Instagram | X | YouTube | Telegram | Tick