As the virtual asset market shows a rebound, attention is focused on whether Ethereum (ETH) can end its long-term stagnation and bounce back. Recently, ETH's market share has fallen to its lowest level since 2019, shocking the industry.
According to CoinMarketCap, a virtual asset information company, as of 2 PM on the 24th, ETH's price recovered to the $1,700 range, rising 11% compared to the previous week at $1,772.73. During the same period, Bitcoin (BTC) rose by about 10%, with both major virtual assets showing similar increases. ETH's market share also slightly increased to.%. Two days ago, on the 22nd, it had dropped to 7%, recording its lowest level in six years.<>
< div>
Related Articles
ETH's poor performance this year is due to a lack of clear upward momentum. The 'Petra' scheduled for March, was delayed by about two months due due to consecutive bugs discovered during pre-testing testing. Petra is the largest Ethereum network upgrade since '' in 2023. It includes major features to improve network usability, such as account abstraction, expanded validator staking limits, and increased data storage (blob) capacity.
Ryan Lee, chief analyst at Bitget, said, "Short-term ETH holders are feeling frustrated due to price sluggishness and upgrade delays," and "Competing projects are likely to gain an advantage in scalability and developer acquisition during the delay period, which could pose a crisis for ETH's market share."
To make matters worse, the approval of the ETETH spot ETFund (ETF) staking function has also been delayed. According to documents revealed by Fox News on on the 14th the, extended the review of Grayscale's February application for allowing ETstaking in in ETH spot ETfto June 1st >
>>The introduction of staking is considered a factor for ETH price increase. Currently, the investment attractiveness of ETF products is lower compared to directly directly purchasing and staking ETH. In addition to Grayscale, major asset management companies such as BlackRock have submitted applications to the the SEC to allow staking functions.
Robert Michnik, head of digital assets at BlackRock, said, "An ETH ETF without a staking function is not a complete product"" and "It should allow additional revenue through staking returns."
The Ethereum Foundation has also defined the recent crisis as a 'turning point' and is taking taking action. Tomash Starchek, co-director of the Ethereum Foundation, posted a long post on X on the 21st saying, ", We will do our best to solve the problem led by the core development team." Vitalik Buterin, the founder's founder, has decided to focus on long-term research activities rather than real-time risk response.
He emphasized, "We plan to solve scalability issues through upgrades like Petra" and "We are working to bring forward projects scheduled 3-5 years from now.""
- sed@sedaily.com
< Copyright ⓒ Decenter, UnauthorizedproReproduction and Redistribution Prohibited >
