#ETH Today's Ethereum makes everyone feel like they are disappointed with the performance, but don't ignore it. After all, it ranks second. Once it wakes up, it will take off directly🛫️. The reason why Ethereum continues to be sluggish at present

• Network problems: The Ethereum network has congestion problems, and transaction fees sometimes rise, resulting in a decline in user experience, which may cause users and developers to choose other more efficient chains in the short term.

• Intensified competition: Other smart contract platforms have emerged, and many projects and users have chosen other blockchain ecosystems. These platforms provide faster transaction speeds and lower fees, which disperses Ethereum's market share.

• Macroeconomic factors: The macroeconomic environment such as high inflation and interest rate hikes has had a negative impact on the cryptocurrency market. Investors are more inclined to hold stablecoins or fiat currencies rather than cryptocurrencies, resulting in a decrease in capital inflows.

• Regulatory uncertainty: The regulatory policies on cryptocurrencies have been continuously strengthened recently. Many investors may have reduced or stopped investing in crypto assets due to concerns about future regulatory policies.

• Slow progress in upgrading: It will take time for Ethereum 2.0 to fully realize key functions such as sharding. The speed of technological innovation and expansion has not met market expectations, which has made investors wait and see about the long-term growth of Ethereum.

Advantages and potential of Ethereum

• Layer2 ecological prosperity: The development of Layer2 ecology has enabled Ethereum to significantly improve its processing capacity and efficiency while maintaining security and decentralization, and promoted the diversification of applications. As the activity of Layer2 transactions increases, the demand for Ethereum mainnet bridging and staking is also increasing.

• Obvious ecological advantages: The TVL of the Ethereum ecosystem (including Layer2) is US$72 billion, and the scale of stablecoins is US$83.6 billion. Solana, which is regarded as the "Ethereum killer", has a total ecological TVL of only US$7 billion and a stablecoin scale of only US$3.7 billion.

• Great potential for technological innovation: Ethereum is undergoing major upgrades, such as Ethereum 2.0, which will increase transaction speed, reduce transaction fees and enhance security. At the same time, Ethereum is implementing sharding to further increase throughput.