Our beloved Ethereum, the second-largest cryptocurrency, is facing mounting pressure and skepticism.

With the approval of Ethereum ETFs this summer, everyone’s asking the same question: why hasn’t Ether hit a new all-time high yet?

As debates and criticisms multiply, let’s dive into the current issues holding Ethereum back from reaching its full potential!

The Concerns

1) Performance Relative to Bitcoin and Other Cryptocurrencies

Since September 2022, Ethereum has significantly underperformed compared to Bitcoin. Its value has halved in relative terms, frustrating many investors who feel they've missed out on potential gains.

This situation is exacerbated by the fact that some competing cryptocurrencies, like Solana have shown remarkable performances: Solana, has increased its value sixfold compared to Ethereum since its market resurgence.

2) Ethereum ETFs and Liquidity Outflows

There were high expectations surrounding Ethereum-based ETFs, especially after the success of Bitcoin ETFs that attracted substantial institutional liquidity.

However, Ethereum ETFs haven't met the same success. Data indicates that there have been more liquidity outflows than inflows, disappointing investor expectations.

3) Technical Update and Impact on Ether

Another source of concern is the recent technical update known as "Dencun". This update significantly reduced costs for second-layer blockchains (Layer 2) when recording their transactions on Ethereum's main chain.

While this is a positive technical development, it has also reduced the main network's revenue and canceled out the deflationary effect that was making Ether increasingly scarce.

Consequently, Ether's supply has become inflationary again, worrying some investors about the token's future value.

4) Questions About the Ethereum Foundation's Vision and Expenses

The Ethereum Foundation is also under scrutiny for its management and spending. Significant transfers of Ether to exchange platforms like Kraken have sparked speculation about potential sales, fueling market fear and uncertainty.

Additionally, the transparency of the foundation has been questioned, with community members seeking more details on fund utilization.

5) Criticism from Competitors and Regulatory Concerns

Key figures from other blockchain projects, such as the founders of Cardano and Solana, have seized this period of doubt to criticize Ethereum.
They question its ability to evolve to meet current market needs, particularly in scalability and transaction fees.

Moreover, concerns persist regarding Ethereum's regulation. Gary Gensler, the SEC Chairman, stated that cryptocurrencies like Ethereum could be considered securities, subjecting them to stricter regulations.

This regulatory uncertainty adds another layer of challenge for the project.

6) Ethereum's Misplay: Not Riding Current Trends

One critical point is that Ethereum may have made a mistake in not capitalizing on current market trends.

While Ethereum focuses on long-term values like decentralization and security, this has potentially led it to overlook immediate community needs and lucrative trends that competitors have exploited.
For example, other blockchains have embraced trends like memecoins, attracting users seeking quick gains, whereas Ethereum's higher transaction fees have discouraged such activities on its network.

Analysis and Perspective

Despite all of that.... (drumroll) ETHEREUM IS FINE!

Even with all these challenges, Ethereum remains a major and indispensable player in the crypto ecosystem. It has been the origin of numerous innovations, such as smart contracts, decentralized finance (DeFi), and NFTs.
The network continues to dominate these areas, holding 70% of the DeFi market and 75% of NFT trading volumes.

It is true, the project may have missed some current trends, like memecoins or immediate scalability needs…BUT, Ethereum's fundamental values prioritize long-term decentralization and security over quick gains or passing fads.

It is a strong positive signal for the times ahead!

Not to mention future updates, such as EIP-7781, which aims to improve the scalability of the main network, potentially restoring Ether's deflationary nature and stimulating its adoption.

We remain confident in Ethereum's long-term vision and its ability to stay a market leader!
$10,000 is in target 🎯.

Take care,
TheCryptoPicks ❤️.