Ethereum, once considered Bitcoin's primary competitor, is facing serious difficulties against a backdrop of price decline and competitive pressure. Let's examine the current situation and potential pathways for recovery.
Ethereum's Worst Period
Ethereum is going through a critical phase that many experts consider one of the hardest in its history. The cryptocurrency's market capitalization has dropped from $480 billion in December to $218.62 billion at the end of March, indicating a loss of investor confidence. The price of ETH has fallen from $4,034 to $1,800, marking a 55% decline during this period.
Competition Is Tightening
While Ethereum struggles, its competitors are showing growth. For instance, the number of developers working on Ethereum-based projects has decreased by 17%, while Solana attracted 83% more developers compared to last year. Ripple's XRP has also surpassed Ethereum in performance, gaining 249% over the past year.
Prospects: Pectra Upgrade
Despite the existing issues, Ethereum is preparing for a significant upgrade called Pectra, which promises to enhance its functionality. One of the key features will be Ethereum Wallets 2.0, aimed at enabling faster and more accessible transactions while improving security through a new passkey system.
Ethereum stands at a crossroads. On one hand, there is increasing competition and a decline in investor confidence, while on the other hand, the implementation of improvements through the Pectra upgrade could help regain lost market positions.
