Is Ethereum beyond saving? Yes, it really is beyond saving
Recently, when discussing Ethereum, many people are saying 'Ethereum is finished', which is somewhat similar to those who were pessimistic about Amazon back in the day. In fact, although the spot ETF has been launched, the market reaction has been tepid, and the price hasn't seen much change, feeling like no one truly cares. Most investors are still watching from the sidelines, and not many believe it will have a major breakthrough in the future, which is strikingly similar to when Amazon was just selling books. Who could have predicted it would later become a global e-commerce and cloud computing giant?
Another point people are discussing is that Ethereum has been 'drained' by its L2. Currently, L2 accounts for most of the trading revenue, leaving the main network with only a small share. Matthew Sigel, the research director at VanEck, even directly lowered Ethereum's target price for 2030 by 67%, from the original $22,000 down to just $7,334, which is quite disheartening.
Moreover, Ethereum has recently encountered an inflation problem. According to data from Ultra Sound Money, in the past 30 days, the amount of ETH burned has been less than the new additions, leading to an overall increase in supply. If this trend continues, it could impact Ethereum's long-term security, as once supply exceeds demand, the value of ETH is bound to be affected.
However, some people still have faith in Ethereum, saying it is like Amazon when it was just a bookstore, and people haven't truly realized its potential. Indeed, from the very beginning, Ethereum has been centered around smart contracts, and now it also supports decentralized finance (DeFi), stablecoins, tokenized assets, etc., with more application scenarios expected in the future.
In summary, Ethereum faces significant challenges, especially issues like L2 drainage, declining gas fees, and ETH inflation, but we cannot draw a definitive conclusion yet. Perhaps as time goes on and the market matures, we will see its outcome, which is indeed the outcome of being beyond saving!
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