Why are those returning retail newcomers not investing in Ethereum?
One of Ethereum's core attractions is its smart contracts and DeFi ecosystem, but newcomers often do not understand its technical advantages and are unclear on how to use decentralized applications (DApps). Additionally, Ethereum scaling solutions (such as Arbitrum and Optimism) have shifted some users, making newcomers feel that Ethereum's inherent appeal has diminished. It may also be that retail newcomers are more focused on short-term explosive opportunities rather than Ethereum's long-term value. Newcomers may not understand that Ethereum is the foundation for many blockchain technologies and may not realize its status as the core of the ecosystem.
In the current economic environment, many newcomers may be adopting a wait-and-see attitude towards high market cap assets (such as Ethereum and Bitcoin), believing that their short-term volatility will be smaller and less intense than that of smaller coins.