Price instability and technical issues of Ethereum are sparking discussions in the crypto community. Let's explore the key points.
Current Technical Issues Impacting Ethereum
The planned Pectra update aims to improve transaction speeds and lower costs. However, liquidity fragmentation across various layer-2 solutions and user accessibility issues raise concerns about the update's potential impact. Issues reported in the test network's empty blocks have cast doubt on Ethereum's reliability, particularly as competitors like Solana gain traction.
Institutional Demand for Ethereum
Recent data shows a decline in institutional interest in Ethereum, with nine out of the last ten trading days reflecting negative trends. While there is hope that including staked ETH in ETFs could bolster demand, current supply dynamics are likely to hinder this potential increase.
Prospects and Challenges for Ethereum
The need to expedite layer-2 protocol integration is evident to improve user experience. The decline in trading volume and fee revenue indicates a significant slowdown in network activity, prompting experts to recommend measures to lower supply growth for sustainable advancement. Regulatory scrutiny from the U.S. SEC could further challenge Ethereum’s market standing.
Ethereum faces the necessity of urgent adaptation amidst stiff competition and technical trials. How it tackles these challenges will significantly impact its future.
