The Ethereum ($ETH) landscape has seen considerable shifts, leading many to question whether the asset can stage a strong on-chain comeback. With prices struggling and on-chain demand in a slump, some are speculating that Ethereum's price could drop further before seeing any significant recovery. 
Ethereum's Current On-Chain Struggles
One of the major challenges Ethereum faces is a noticeable decline in demand from decentralized finance (DeFi), Layer 2 (L2) solutions, and memecoins—once pivotal drivers of its price action. These sectors, which once fueled Ethereum’s growth, now seem less influential, creating an environment where demand is far from its peak.
Moreover, the Ethereum network's burn mechanism, which was intended to offset supply growth by burning a portion of transaction fees, is no longer as impactful. Without substantial DeFi activity or a major surge in meme coin projects, burns have slowed significantly. This has allowed Ethereum's circulating supply to increase at a faster rate than the burn can reduce it, further contributing to the selling pressure.
From Proof of Work to Proof of Stake: A Fundamental Shift
The transition from Proof of Work (PoW) to Proof of Stake (PoS) was heralded as a revolutionary move for Ethereum. Under PoW, new $ETH was minted through mining, a process backed by physical energy. Now, under PoS, Ethereum is being “printed” through staking rewards—a system
Can Ethereum Make a Strong On-Chain Comeback?
The question remains: Will Ethereum stage a powerful on-chain revival? For this to happen, several catalysts would need to emerge, including a resurgence in DeFi, memecoins, and other on-chain activities that drive network demand.
A revival of burning mechanisms, paired with lower supply issuance, could also provide the necessary momentum.Until these factors come into play, many investors won’t be surprised if $ETH drops further from current levels. Yet, with Ethereum’s track record of innovation and adaptation, betting against a comeback could be premature. $ETH
