The analyst disclosed that various market conditions and technological developments have impacted Ethereum’s momentum and have led to mixed views on its future growth trajectory.
Ethereum’s Market Sees Shift
Percival, highlighted that Ethereum has faced a decline in activity due to the rise of other blockchains with greater accessibility, more advanced technology, and faster update cycles.
The analyst pointed out that any future price recovery would depend on substantial investment inflows, which have yet to materialize.
Furthermore, after the Federal Open Market Committee’s (FOMC) announcements, Ethereum’s gas fees surged, hinting at a possible shift of capital from traditional treasuries into decentralized finance (DeFi).Ethereum Network Lags Behind
While Percival noted that from an economic perspective, Ethereum needs to revert to its max fee pass gas mean, aligning its growth with its intrinsic value, the analyst also suggests that Ethereum currently faces several internal gaps.
Although the technology ecosystem around Ethereum is expanding, the network seems to be lagging behind the competition, according to Percival. The CryptoQuant analyst reveals that this disconnect between Ethereum’s capabilities and its technological rivals has led to a significant shortfall in investment.Moreover, the limited inflow of small capital and lack of consistent use suggest that even minor investments are not being sustained over time.
The analyst’s take is further validated by the fact that Ethereum’s network has faced increased competition from alternative blockchains like Solana, Binance Smart Chain, and others that boast higher transaction speeds and lower fees. This has, to some extent, diverted attention and investment from Ethereum to these newer ecosystems. Featured image created with DALL-E, Chart from TradingView