The attractiveness of Ethereum (ETH) as a reduced investment is due to the devaluation of the main network by second-layer solutions and the lack of reaction of the community to the over-creation of tokens.
Nic Carter, a partner at Castle Island Ventures, announced on March 28 that the second layer of Ethereum had absorbed much of the value of the main network, and that this, along with the overproduction of tokens, had weakened Ethereum.
Quinn Thompson, founder of lekker Capital, also believes that Ethereum is no longer a good investment option.
He noted that the cryptocurrency has a market value of 225 billion, but transaction activity, user growth and wage revenues have declined.Currently,the Ethereum to Bitcoin (ETH/BTC) ratio is at its lowest level in five years, at 0.02260, and the price of Ethereum has reached 1,894, a 5.34 percent decrease over the past seven days.
In September 2024, quintelgrave reported that Ethereum's wage revenues had fallen by 99% over the past six months. Adam Cochran of cinneamhain Ventures suggested that "core-layer roll-ups" could solve this problem by changing incentive structures.
Meanwhile, Standard Chartered on March 17 cut its Ethereum price forecast for the end of 2025 from 10,000 to 4,000.
However, some traders remain optimistic about the future of the cryptocurrency, calling it the best market opportunity.
