Ether (Eth) The decline of the appeal as an investment derived from the amount of layer-2 draining from the main network and a lack of community pushing to excessive token creation, says a crypto capitalist venture.
“The #1 cause is the greedy Eth L2S siphoning value from L1 and the social consensus that excessive token creation is A-OK,” Castle Island Ventures partner Nic Carter Says In a post of March 28 x.
Ether “died by its own hand”
“The eth is buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson whose Ether was “completely dead” as an investment.
Source: Quinn Thompson
“A $ 225 billion market cap network that detects decline in transaction activity, user growth and fee/income. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” Thompson Says In a post of March 28 x.
The ratio of eth/btc – showing the relative -child ether compared to bitcoin (Btc) – seated at 0.02260, its lowest level in almost five years, According to In tradingview data.
At the time of publication, the Ether traded at $ 1,894, down 5.34% in the past seven days, According to In CoinMarketCap data.
Ether dropped 17.94% in the past 30 days. Source: CoinMarketCap
Meanwhile, Cointelegraph Magazine reported to September 2024 the income of the fee For Ethereum has “collapsed” 99% over the past six months while the “extractive L2S” absorbs all users, transactions and revenue while no one contributes to the base layer.
Around the same time, partner in cinneamhain ventures Adam Cochran said based on rollups The issue of Layer-2 Layer-2 networks can be resolved that captures liquidity and income from the base layer of the blockchain.
Cochran said based on rollups can “directly affect Ethereum’s monetization by making a relatively major change in incentive structures.”
Related: Ethereum Futures Premium hits 1+ low -time – is it time to buy the bottom of ETH?
In spite of the optimization at the end of last year about Ether up to $ 10,000 in 2025 – Especially after reaching $ 4,000 in December, the same month Bitcoin held $ 100,000 in the first time – since it saw a sharp decline next to the broader crypto market.
Standard Chartered is added to Bearish Outlook by a letter of client of March 17changing their end of the 2025 ETH price estimate from $ 10,000 to $ 4,000, a 60% cut.
However, many Crypto traders, including businessmen who earn a doctor and Merlijn’s businessman, are “worthless bullish” and argue that Ether can Be “best market opportunities.”
Source: Merlin is the businessman
Magazine: Arbitrum co-founder is skeptical of moving to Based and Native Rollup: Steven Goldfeder
