The Ethereum network has successfully overcome the difficulties it has faced in recent years and has become the central platform of smart contracts. However, many investors and developers who once affiliated with Ethereum are now worried about the future of the network. So, where does Ethereum go?
The past achievements of the Ethereum network and the current status
In the last decade, the Ethereum network has made itself accepted as the center of the Defi ecosystem of $ 113 billion. He managed to defeat strong competitors and remained at the top, overcoming complex technical challenges. However, recently, dynamism and energy in the Ethereum community seem to have lost. The goal of ensuring the mass adoption of the network has become an increasingly distant dream.
One of the biggest problems of Ethereum was that Layer 2 block chains attract value from the network. Initially, these technologies were expected to alleviate the process load and relax the main network. However, on the contrary, many experts argue that these applications negatively affect the token economy of Ethereum and shift the value of projects to other platforms.
Ethereum’s current market value is around $ 221 billion. However, some critics say that this value is inflated and Ethereum is no longer an investable being. It is claimed that even the transition to Proof of Stake (evidence of stock) is not the right step for the future of the network.
The Proof of Stake system managed to reduce energy consumption by 99.5 %. Nevertheless, some critics think that this transition damages the basic structure of Ethereum.
Price decreases and stagnation
The recession in Ethereum was reflected in the price of Ether, the local tokene of the network. During the past year, Ether’s value fell by 50 %and fell to the lowest level of the last 16 months.
The price target of $ 10,000, which many people dream of, seems far away. Finance giants, such as Standard Chartered, predict Ethereum that they will have a difficult year.
David Liebowitz, who has been in the defi world for a long time, recalled an old analogy of Vitalik Butterin to explain the current situation of Ethereum. If Ethereum cannot recover itself, it can only remain as a small but important part of the infrastructure like Linux. However, it may never reach its target of mass adoption.
There are those who are pessimistic about the future of Ethereum as well as hopeful ones. Robert Mitchnick, President of the Blackrock crypto unit, argues that concerns about Ethereum are “exaggerated”. According to him, Ethereum still has strong advantages.
In particular, the fact that the stinging returns are added to Ethereum’s ETFs is one of these advantages. In addition, Blackrock’s Tokenized Treasury Fund BUIDL, this month, 361 %on the Ethereum grew by exceeding $ 1.7 billion. There was no such growth in other block chains.
Is it early to delete the Ethereum network?
While giant investment companies like Blackrock continue to support Ethereum, some defi investors still maintain their hope. A network that is good enough for Wall Street’s biggest player should not be erased yet in the defi world. The future of Ethereum is still unclear. However, time will show which direction this journey will evolve.
Kriptokoin.comEthereum, as you have followed from, manages to leave his opponent behind in some metrics.
