Ethereum is at a "crossroads", what are the bulls and bears arguing about?
Bullish Camp: Why say "Ethereum can still rise"?
Stable moat + technical upgrades + macro liquidity keep the moat sturdy as an old dog
Ethereum is still the absolute leader in DeFi, with more than half of the funds (about $50 billion) on the Ethereum chain, most stablecoins, NFTs, and AI projects rely on it.
65% of global blockchain developers are innovating in the Ethereum ecosystem, with over 6,000 active each month, and a solid technical foundation.
Inflation is lower than Bitcoin: ETH has a new issuance of 0.5% per year, which is scarcer than BTC's 0.83%, making it more resistant to inflation for long-term holders.
The benefits of technical upgrades have not yet been released Pectra Upgrade: The upgrade plan focused on 2025 will allow users to pay fees with tokens like USDC (without needing to hold ETH), while optimizing staking rules (large holders can stake more ETH), improving efficiency and user experience.
In 2025, a 50 basis point interest rate cut is expected. After market liquidity increases, funds may flow back into cryptocurrency, with ETH benefiting significantly as the "second".
The bullish faction believes Ethereum is like the "Apple of the blockchain world", with a rich ecosystem and a solid technical foundation. A short-term dip is seen as a buying opportunity, and they expect a long-term surge!
New users prefer to play chain games and trade meme coins, leaning towards Solana (lower fees, faster speeds), while Ethereum has become the "old money club".
As secondary networks like Base and Arbitrum become more popular, the Ethereum mainnet’s fee income decreases, leading to a sharp drop in ETH consumption and exacerbating inflation.
Staking returns are too low; Solana's staking rewards are twice that of ETH, leading many large holders to shift to SOL, cutting ETH staking volume in half.
The foundation is criticized for being "inactive": The Ethereum foundation spends $130 million a year, but the technical upgrades are sluggish, and the community feels they are "laying flat".
The bearish faction believes Ethereum is like a "washed-up star", with slow technical upgrades and poor profit effects. Young people are flocking to Solana, and if reforms don't happen soon, it will inevitably cool off!
The bulls and bears are arguing fiercely, fundamentally it is the "tech idealists" vs. the "reality profit seekers". If Ethereum wants to make a comeback, it must prove it can achieve both technical upgrades and allow retail investors to make money! Otherwise, funds will continue to flow to Bitcoin and Solana.
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