Recent statements on cryptocurrency Twitter have sparked a community debate over whether key industry figures should diversify their investments or continue to invest heavily in their own blockchain ecosystem.
Bitcoin and other digital assets are growing rapidly. Despite this, #Ethereum has shown a lack of movement. This persistent stagnation has spawned trending memes: #ETH is struggling to get below $3,500 after being repeatedly stopped in the $4,000 range.
Indeed, experts warn that a drop to $2,800-2,500 is possible if whale activity doesn't pick up during the price slump. Experts warn that the price could fall to $2,800-2,500 if whale activity does not increase. Currently, large transaction volumes (LTV) remain low compared to previous bull markets, meaning that retail investors rather than institutional investors are driving the market.
Unlike previous speculative spikes in 2017 and 2021, whale activity seems to have calmed down. Analysts believe that for Ethereum's uptrend to continue, it needs an increase in LTV to validate institutional demand. However, if large holders start selling, the price correction may continue.
Will Layer 2 hurt Ethereum?
There have been concerns about the price of Ethereum and how the scalable Layer 2 network will affect the financial stability of the asset as a whole. However, the Ethereum co-founder rejected the idea of abandoning the Layer 2 network in favor of simply increasing the Layer 1 ETH gas limit, saying that such an approach would undermine the social structure of the network. Instead, he urged developers to focus on increasing the value of ETH in an ecosystem with more Tier 2s.
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