what to expect from ETH?
The post what to expect from ETH? appeared on BitcoinEthereumNews.com.
Ethereum, the second cryptocurrency in the world by capitalization, as well as the most popular blockchain platform for decentralized applications, is going through a very complex period. In recent months, the value of Ethereum (ETH) has dropped drastically, causing concern among investors, analysts, and the community itself. But what are the reasons for this crisis and what scenarios can we expect in the near future? Why the price drop threatens the Ethereum network The reasons for the current Ethereum crisis are diverse and interconnected. First of all, one might wonder why a low price of Ethereum represents a problem for the entire network. Ethereum is based on a “proof of stake” system, meaning on the deposit of ETH by users to ensure the functioning of the blockchain. Those who stake receive an economic incentive, but if the price of Ethereum decreases too much, this incentive is drastically reduced. This makes the network less secure, because fewer and fewer people are incentivized to keep their Ethereum locked in staking. Less security means less trust from users, thus generating a further negative effect on the value of the cryptocurrency itself. “`html Ethereum in difficulty: competition, fees too low, and unfavorable macroeconomic context “` Another important issue concerns the growing competition. Ethereum was the pioneer in decentralized finance (DeFi) and despite continuing to dominate the sector, its position is threatened by emerging blockchains, such as Solana, Cardano, and Avalanche, which offer faster, cheaper, and more scalable transactions. These new competitors are attracting more and more developers and users, thus reducing the absolute dominance that Ethereum once had. Recently, moreover, Ethereum has carried out important technical upgrades, including the well-known “Dencun” upgrade, which has significantly reduced transaction fees, previously considered too high. Paradoxically, however, fees that are too low have proven to be a…
Filed under: News - @ April 14, 2025 10:20 am