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Tabqa 2, Governance, and organizational issues

ETHEREUM (ETH), the second largest encrypted currency in the world through the market value, is witnessing a severe contraction, which represents what could be the worst quarter in history.

It comes amid calm in the broader market, although for Ethereum, expectations are the largest Altcoin by Market Cap Metrics continues to weak.

Investigate ETAREUM prices

Ethereum lost more than 44 % of its value in the first quarter (Q1). Data also shows standard levels of active sale over the past three months. CEO of Cryptoquant Ki Young Ju Attribute This is an unprecedented wave of sales.

Ethereum faces standard sale
Ethereum faces a record of record. source: CEO of Cryptoquant on X

With huge sale, the ethereum market dominance dramatically. Data on CoinmarketCap He appears It reached 8.5 % until this writing, which represents its lowest level since 2020.

This demand for large -scale discussions on X (Twitter) prompted the analysts to explain the reason for the decrease ethereum.

“What exactly happened to ethereum?” Tron founder and Huobi global advisor Justin Sun Impose.

Layer 2 effect on ETHEREUM decline

According to Camila Russo, the basic interpretation of ETHEREUM decline is the rise of layer 2 (L2) networks. While these scaling solutions improve the ability to expand and reduce congestion on Mainnet’s ethereum, the benefits are not reflected adequately in the performance of ETH prices.

“There is a way to fix the ethereum L2 and UX terrifying segmentation. But I still do not see how every L2 activity is reflected on Mainnet Ethereum. Layer 2 gets ETHEREUM for free at the present time, only they pay for the area of ​​the mass, which they will pay less with large points,” Ruso Make up.

This perspective indicates that although Ethereum remains central to many Blockchain applications, its value capture mechanisms are defective. This leads to the continued slide of the ETH price despite the ongoing efforts of adoption and development.

Ethereum Technical Foundation

Besides structural issues with L2 scaling, some ETHEREUM developers expressed their concerns about the technical basis of Blockchain, which raises questions about its long -term validity.

One of the developers, the developer, described the UNCLE Rockstar developer, ethereum as “absolute garbage fire.” He said that the network was drifting away from its original promise to the universal universal computer.

“To hide the constituent failures, the meaningless complexity remains to add it at the top … which now tells its ugly head in the breaches such as the cost costing 400,000 ETH (~ $ 1.5 billion),” I mentioned.

The developer also criticized Ethereum governance, claiming that it has become a central emerging company in the first place that benefits from the co -founder, Vitalik Buterin.

There is no convincing narration

The Blockstream Tuur Demester adviser said that the perceived lack of a convincing narration was another major factor that contributes to the decline of ETHEREUM.

“The stories have run out,” Dimyster Mockery.

He referred to the 2017 tweet to caution Current currencies depend on the grandmother instead of interest. This position depends on the assumption that the market generates new accounts faster than Ethereum can maintain.

Unemployment uncertainty and institutional frequency

Organizational concerns also loosen the future of Ethereum. Unlike Bitcoin, which is widely recognized as a commodity, ETHEREUM features and the generation of return make it vulnerable to classification as safety.

Francisco Karatin de Masido, director of the funds, noted that ETH’s monetary policy has become increasingly clear since the merger. The upgrade brought a lower activity in the network, which led to inflationary pressure instead of the previously expected contraction.

Massido also highlighted that Ethereum lacks strong institutional support that Bitcoin Etfs has been offered to BTC. Likewise, the Bitcoin mode as digital gold also adds credibility to this assumption.

“TBH [to be honest] It still seems to be the institutional option, and not only clear what this means for the price, “MACEDO Note.

He pointed out that the ecological system of class 2 part of ETHEREUM and the inceptions of organizational uncertainty have stopped some investors from betting on the long -term ETH growth.

The last ETHEREUM conflicts condemn a set of factors, including unintended consequences for L2 scaling solutions. Although Ethereum is still an important player in Blockchain space, his work indicates that investors and developers are increasingly concerned about his future.

However, some analysts note that although the price of Ethereum suffers from poor performance, the Eth Staking rises. This can mean long -term confidence among some investors. However, without clear stimuli or structural changes, ETH may continue to perform weak for other major encrypted currencies.

Ethereum Prices (ETH)
Prices Prices Ethereum (ETH). Source: beincrypto

Beincrypto data shows that ETH was trading for $ 1890 to this writing, an increase of 1.34 % over the past 24 hours.

Disintegration

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