The recent $8.66M liquidation by an early investor highlights Ethereum's network issues post-Dencun upgrade.
Early Investor's Success
According to Lookonchain, an early Ethereum investor recently sold his remaining 2,001 ETH, securing a total profit of $8.66 million. This investor originally purchased 5,001 ETH in 2017 at an average price of $277. Despite Ethereum peaking at $4,878 during the last bull run, the sale was only concluded last month, marking the end of a long-term hold.
Ethereum's Revenue Decline Raises Concerns
Beyond this significant sell-off, Ethereum's network revenue has sharply declined. By the end of March, the network generated only 3.18 ETH, roughly $6,000, a 73% decrease from the previous week and a 95% decline from mid-March 2024. This drop highlights ongoing economic challenges post-Dencun upgrade.
Ethereum Prepares for Pectra Upgrade
However, Ethereum is not stopping as the network is preparing for its next major update, the Pectra upgrade, set for 2025. This update will improve efficiency and scalability and enhance blob space allocation.
Despite uncertainties, Ethereum remains a leading force in the blockchain market, continuing to develop new solutions to enhance its economic sustainability.
