What happened to Ethereum? This time it's really not its fault.
A detailed analysis of why ETH's performance in this round is below expectations and whether there is still a future.
Recently, Ethereum (ETH) has been falling to alarming levels, but blaming it entirely is quite unfair. To be honest, the entire crypto market has been sluggish in this round, but ETH just happens to be the thermometer.
Last year, it was judged that this wave would at most be a bear market rebound, estimating Bitcoin (BTC) would reach about 58,000, but reality slapped us in the face—BTC.
Rushing up to 73,000 with the help of ETFs. But who would have thought that this 'rebound trap' would actually manifest with ETH? From a technical perspective, ETH hasn't even reached the previous bull market highs; it was sluggish on the way up but fell sharply.
To be fair, ETH's rise from $800 to $4000 is a fivefold increase, but it can't stand up to its peers. Bitcoin next door is packaged as 'digital gold' and has entered Wall Street, Solana is attracting attention with meme coins, and even the Base chain is thriving on Coinbase's traffic.
In contrast to ETH, everyone is still holding on to the old saying of 'mother of all chains', but nowadays, the title of 'mother chain' is really not as appealing as 'meme coin chain'.
Where is the problem?
The market is no longer the same as it was back then. Bitcoin has been laundered and has become a darling in traditional capital's eyes, jumping up and down with the US stock market every day. Meanwhile, the true crypto-native market—those dealing with smart contracts and playing DeFi—has become a neglected corner.
Bitcoin is currently playing the 'buy more as it rises' game, after all, there are mining costs and ETF support. And ETH? Although there are also ETF expectations, everyone knows the truth: the first to take the plunge gets the premium, the second can only sip the soup. The more awkward part is that now new public chains are emerging endlessly, each claiming to replace ETH, causing funds to flounder like headless flies.
Is there still hope for the future?
Don't be fooled by the current criticism of ETH; it still has three aces up its sleeve:
Innovation's old capital is still there: inscriptions last year, and now staking again; the real innovations that can stir up a storm still come from the ETH ecosystem.
Decentralized branding: when centralized exchanges periodically have issues, people will always remember there’s a chain that can truly say 'I control my assets'.
3. Institutions will eventually enter the market: once BTC ETFs are well-established, traditional capital will seek new targets; it can't always be about Bitcoin.
Current ETH is like a faded star, but don't forget it used to be the headliner of concerts with thousands of fans. If one day it launches another Uniswap-level blockbuster application, or if Web3 really needs a reliable public chain to lay the foundation, you'll see if the funds come rushing back.
Ultimately, criticizing ETH is actually criticizing the entire crypto market's lack of continuity. When Bitcoin becomes a financial tool and new chains indulge in meme coin revelry, the blockchain world that once embodied the ideal of 'code is law' may be waiting for its next awakening moment.
As for whether ETH can wait for that day? At least it still has the most developers and the most smart contracts in its accounts—these days, having good technology is better than having none.
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