Ethereum, the second most popular crypto in the world, is on a free fall. It has not even touched the $4,000 mark in 2022, so far. Ethereum is also undergoing a massive upgrade to its blockchain. But experts have cautioned that it will lose market as the upgrade will end in 2023. By then, rival blockchains like Solana and Cardano will have gained ground.
Analysts scrutinizing Ether’s performance say the current pricing is appealing because the cryptocurrency is down 34% from an all-time high of $4,870. Moreover, ethereum network’s adjusted total value locked (TVL) has dropped by 17% since ether’s price peak. Ether’s TVL has dropped from $166 billion to $138 billion. The drop has been picked up and cashed on by Terra and Fantom. These two networks have gained significantly – Terra went up to $18.7 billion from $11 billion, and Fantom gained $4 billion attaining $9 billion.
Experts have placed ethereum in the red because of the delays in its network upgrades, three-month-long price correction and the worsening macroeconomic conditions. Smaller players like ADA and SOL are catching up and so are the other altcoins. The year and the future looks tough for ether, but is it?
Ether’s future gains depend on the ethereum’s migration to proof-of-stake (PoS) protocols. Though it’s going to be a dramatic transformation, we can only hope and watch for a much-needed change. Ethereum hasn’t gained the label of being the crypto world’s platform of choice (due to its bar-raising blockchain technology that powers smart contracts and digital applications) for nothing.
Ethereum has over 3,000 popular DApps to its credit. Holding onto this, it will make investors and businesses hold on tight to it as it transitions fully and emerges as Ethereum 2.0.