A prominent UK financial firm specializing in cryptocurrency forecasts has revised its forecasts for altcoin prices, including Ethereum. The study addresses potential changes in the Ethereum ecosystem by 2025.
Changes in Ethereum Forecast
Geoffrey Kendrick, head of cryptocurrency research, has revised his Ethereum forecast downward. In the report 'Ethereum – Midlife Crisis,' he emphasizes the significant impact of layer 2 solutions on the Ethereum ecosystem, noting that the Base network has attracted around $50 billion from the Ethereum main network.
Impact on Ethereum's Future
Kendrick highlights that ongoing changes to the Ethereum network could lead to adverse effects. The previous Merge phase has transferred major capabilities to layer 2 solutions, resulting in 'super profits.' Upcoming upgrades, such as Dencun, may exacerbate this trend.
Growth Strategies and Solutions
Despite holding a significant portion of total value locked in DeFi and leading in stablecoins and tokenized assets, Ethereum's dominance is declining. To regain balance, strategies and solutions are needed to ensure sustainable ETH growth over the coming years.
Ethereum must address several challenges, including strengthening its position in the real-world asset market and technical improvements. These steps will help maintain its leading position among cryptocurrencies.
