$ETH
In recent days, Ethereum (ETH) has faced a notable drop in value, losing approximately 40% in the last three months, which has raised concerns among investors and analysts. This decline is attributed to several interrelated factors.
Firstly, the decrease in appetite for risk assets has negatively impacted ETH, especially following the launch of Ether ETFs in the U.S., which, instead of boosting the price, have coincided with a 26% drop and net outflows of over $420 million.
Additionally, activity in decentralized applications (DApps) on the Ethereum network has decreased by 23%, indicating lower utilization of its ecosystem. This decline in usage adds to concerns about security, such as the recent hack of Bybit, where 401,347 ETH were stolen, affecting trust in the network.
Competition has also intensified pressure on Ethereum. Blockchains like Solana and Cardano have gained ground due to their higher speed and lower transaction costs, attracting users and investors looking for more efficient alternatives.
Despite these challenges, Ethereum maintains solid fundamentals, with a robust DeFi ecosystem and an active community. However, to regain its dominant position, it will be crucial to address these issues and adapt to the changing market dynamics.