Due to declining whale trading volume, lower ETH sales, and slow ETF adoption rates, Ethereum's market capitalization has lagged behind Bitcoin by $1 trillion.
Concerns about centralization after Ethereum's shift to proof of stake have exacerbated its ongoing market troubles.
Following CNF's recent sharing of staking cap assessments, Vitalik Buterin warned of Ethereum's centralization risks in the evaluation, noting that Ethereum (ETH) has not only diverged from Bitcoin (BTC) trends over the past three years, but has also lagged behind other altcoins.
Since the bull market cycle of 2021, the peak demand for ETH among whales has decreased by nearly 70%, significantly reducing the network's liquidity and its appeal to large investors. As Vitalik Buterin emphasized in a recent official blog post:
This power decentralization helps maintain the distribution of validators, but it comes at a significant cost: participants executing 'specialized' tasks can easily become highly centralized.
Additionally, the Ethereum Foundation has sold approximately 336,000 ETH (about $906.3 million) over the past four years, further exacerbating bearish sentiment towards the asset. Here are three factors driving ETH's decline in 2024: 1) A 70% decrease in Ethereum whale trading volume over the past four years, 2) The sale of over $1 billion worth of ETH during the market rebound, 3) Adoption rates lagging behind Bitcoin ETFs at 85%.
As centralization risks increase, Ethereum's market share declines.
Notably, CNF recently provided an update to Ethereum developers confirming that the Altair upgrade will take place in late October. However, by October 2024, Ethereum's market capitalization has lagged behind Bitcoin by $1 trillion, a significant gap compared to the $625 billion difference during the 2021 bull market.
Ethereum's transition from proof of work (PoW) to proof of stake (PoS) has raised concerns about centralization, as only a large number of stakers can meet the minimum staking requirement of 32 ETH.
This has led to the dominance of major validators, with two block builders, Beaverbuild and Titan Builder, validating 88.7% of blocks in October 2024. Buterin released a new roadmap to mitigate these risks, aimed at addressing investors' growing concerns about centralization as they await further developments in 2025.
As of this writing, according to CoinMarketCap data, Ethereum (ETH) is trading at $2,635.43, down 3.97% in the last day and up 0.50% in the past week.
Due to declining whale trading volume, lower ETH sales, and slow ETF adoption rates, Ethereum's market capitalization has lagged behind Bitcoin by $1 trillion.
Concerns about centralization after Ethereum's shift to proof of stake have exacerbated its ongoing market troubles.
Following CNF's recent sharing of staking cap assessments, Vitalik Buterin warned of Ethereum's centralization risks in the evaluation, noting that Ethereum (ETH) has not only diverged from Bitcoin (BTC) trends over the past three years, but has also lagged behind other altcoins.
Since the bull market cycle of 2021, the peak demand for ETH among whales has decreased by nearly 70%, significantly reducing the network's liquidity and its appeal to large investors. As Vitalik Buterin emphasized in a recent official blog post:
This power decentralization helps maintain the distribution of validators, but it comes at a significant cost: participants executing 'specialized' tasks can easily become highly centralized.
Additionally, the Ethereum Foundation has sold approximately 336,000 ETH (about $906.3 million) over the past four years, further exacerbating bearish sentiment towards the asset. Here are three factors driving ETH's decline in 2024: 1) A 70% decrease in Ethereum whale trading volume over the past four years, 2) The sale of over $1 billion worth of ETH during the market rebound, 3) Adoption rates lagging behind Bitcoin ETFs at 85%.
As centralization risks increase, Ethereum's market share declines.
Notably, CNF recently provided an update to Ethereum developers confirming that the Altair upgrade will take place in late October. However, by October 2024, Ethereum's market capitalization has lagged behind Bitcoin by $1 trillion, a significant gap compared to the $625 billion difference during the 2021 bull market.
Ethereum's transition from proof of work (PoW) to proof of stake (PoS) has raised concerns about centralization, as only a large number of stakers can meet the minimum staking requirement of 32 ETH.
This has led to the dominance of major validators, with two block builders, Beaverbuild and Titan Builder, validating 88.7% of blocks in October 2024. Buterin released a new roadmap to mitigate these risks, aimed at addressing investors' growing concerns about centralization as they await further developments in 2025.
As of this writing, according to CoinMarketCap data, Ethereum (ETH) is trading at $2,635.43, down 3.97% in the last day and up 0.50% in the past week.
