Pusula of the Altcoin Market Ethereum (ETH) has long been the subject of the joke of investors. ETH, which has lost 77 percent against Bitcoin since December 2021, has become disappointed for short -term earning -oriented investors. However, this dramatic decline does not mean that Ethereum should be disguised. On the contrary, some investors think that positive signals bloom in the midst of such pessimism.
ETH/BTC transaction parity crashed, criticisms increased
Ethereum’s BitcoinLong -term depreciation against it offers an annoying picture for many investors. Since the summit level reached at 4 thousand 760 dollars in November 2021, there has not been a serious recovery against the dollar, nor the decline against the BTC stopped. Ethereum has begun to be seen as a “shitcoin”, which is now mocked by some investors. Even many small capital altcoinComments are increasing that ‘s better performance than Ethereum.
Many reasons are considered as causing this decline. The prominent ones are the Layer-2 solutions Eth Instead of attracting users and investors, complex updates frighten the investor, high transaction fees and slow improvements. In addition, while regulatory uncertainties reduce the charm of Ethereum, Solana And CARDANO It stands out faster Altcoin projects such as. In the face of Bitcoin’s clear and simple investment narrative, Ethereum is neither full Altcoin nor the leader Coin.
Although Ethereum is in the background, it is still strong
However, this pessimistic painting is not in a size that requires a completely disposal of Ethereum. The technical and structural development of the project shows that it is still in the leading position in the sector. Realized in 2022 The Merge updateThe transition to the Yle Proof of Stake system has achieved significant environmental achievement by reducing the network of the network by 99.9 percent. Ensuing Shapella update It made it possible to retreat the Staked ETHs and increased the liquidity seriously.
Development activities on Ethereum continue unabated. Proto-Danksharding (EIP-4844), such as scalability solutions, Layer-2 solutions became more cheaper and the load on the network was lightened. Moreover ZKSYNC, Arbitrum And Optimism The daily transaction volume of Layer-2 projects such as 2023 left the main network behind. All these developments reveal that Ethereum is still one of the technologically leading Altcoin projects.
Investors pessimistic and this can be a good signal
According to Santimement, Ethereum draws attention as the 7th crypto currency in which the most improvement has been made in the last 30 days. Moreover, the vision and infrastructure that Ethereum has brought from the past to the present is still the basis of many new projects. Lido Finance, Rocket Pool And Coinbase The growth of liquid stinging solutions on platforms such as expands Ethereum’s understanding of decentralization.
Moreover Uniswap, Aave, Curve Updated versions of the leading defi protocols such as are still working on the Ethereum network. Farcaster, Lens Ethereum now has a usage area that is not limited to defi and NFT with its social protocol projects. Considering all these developments, the more weak price performance seems to be Ethereum is still a strong ecosystem.
The fact that the market has become so pessimistic about ETH is considered a recovery signal by some investors. Because markets often tend to act unlike the expectation of the crowd. The current position of Ethereum may be indicating a period in which the decline in the price of many in the eyes of many is approached.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
