According to Bloomberg, Ethereum is facing directional issues due to user experience adjustments leading to declines in activity and fees. The transaction volume of Layer-2 blockchains like Arbitrum and Optimism has increased by 430% since March, while Ethereum's fees have decreased by 87%.
Ethereum's token Ether has risen about 75% in the past year, but still falls short compared to Bitcoin's performance. Since the 'Dencun' upgrade, Ether's supply has turned inflationary, raising concerns among investors. The rise of Layer-2 has sparked debates about Ethereum's future path.
Although Layer-2 is seen as a potential boon for Ethereum, its overall returns are not as expected. Competing networks like Solana have attracted more capital inflow, and Ethereum needs to focus on scaling to maintain its market position.
