Ethereum "drops the chain", Bitcoin "cannot fly high"? Revealing why Ethereum has dragged down Bitcoin's soaring road
Ethereum (ETH) and Bitcoin (BTC) have always been closely related in the cryptocurrency ecosystem, and this relationship is not only reflected in the price, but also in their influence and development trend on the entire market. However, the recent weakness of Ethereum seems to have become an obstacle to Bitcoin's further rise.
Fundamental analysis of Ethereum's weakness
Technical bottleneck: Markus Thielen pointed out that Ethereum developers did not respond quickly enough to market changes. For example, when the NFT (non-fungible token) craze emerged, Ethereum could have taken this opportunity to promote a wider range of blockchain applications. However, due to technical limitations and slow response, Ethereum missed some important market opportunities.
Scaling problem: Ethereum has always faced the challenge of scaling, that is, how to increase transaction speed and reduce transaction costs while ensuring security. This problem limits Ethereum's ability to handle large-scale transactions and applications, thereby affecting its market position.
Rise of competitors: While Ethereum is facing difficulties, other blockchain platforms such as Solana and Polygon are developing rapidly. These platforms offer higher transaction speeds and lower costs, attracting a large number of users and developers. Ethereum's market position has therefore been challenged.
The impact of Ethereum's weakness on Bitcoin
Market confidence: As an important member of the cryptocurrency market, Ethereum's weak state will undoubtedly affect the confidence of the entire market. When investors are concerned about the prospects of Ethereum, they may be cautious about the entire cryptocurrency market, thereby affecting the performance of mainstream cryptocurrencies such as Bitcoin.
Fund flow: Markus Thielen mentioned that Ethereum's weakness has prevented large-scale fiat currencies from flowing into the crypto ecosystem. This means that funds that might have flowed into the crypto market are attracted by other investment opportunities, thereby limiting the price increase space for cryptocurrencies such as Bitcoin.
In general, Ethereum needs to speed up innovation and expansion to meet competitive challenges and regain its market position.
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