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"Ethereum’s fundamentals are collapsing", What's the truth?
9 sats \ 3 comments \ @ceoledrops 11h bitcoin
Ethereum's fee revenue for August was $39.2M. Down 40% YoY, down 20% MoM. On the surface, that looks bad.
But the narrative that this signals an exodus is wrong. The drop is a direct, intended result of the Dencun upgrade. Cheaper L2s mean less revenue settles on L1. This was the plan all along.
The metrics that actually measure ecosystem health tell a different story:
· 552k+ daily active addresses (+21% YoY) · Stablecoin supply near ATHs · Robust DeFi and L2 activity
The ecosystem isn't dying; it's migrating.
The real, longer-term challenge for ETH is strategic. It's caught in a squeeze:
· Bitcoin won the "digital gold" narrative. · Solana is winning the "cheap and fast execution" narrative.
Ethereum's "ultrasound money" angle never overtook BTC's monetary premium, and it can't outpace SOL on pure throughput.
What's propping it up? Spot ETFs. They've created a crucial TradFi inflow pipe and tether ETH's value to stablecoin adoption (a real-use moat).
But the clock is ticking. Solana ETFs are on the horizon, and that will be the true test. When investors can easily choose between "Digital Gold (BTC)," "The Ecosystem (ETH)," and "The Speedy Challenger (SOL)" in their brokerage account, the narrative war begins in earnest.
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111 sats \ 0 replies \ @freetx 11h
A very normal question new Bitcoiners ask is "Well whats to stop Bitcoin2 from coming along and displacing the original?"
Its a fair question. Of course they misunderstand how dynamics of "money" work -- that its always a winner-take-all scenario. The bigger Bitcoin gets, the bigger its likely to get.
Bitcoin is largely protected because its a monetary network, it has no "utility" besides being perfect money.
The same dynamics are not true of ETH, SOL, etc. They are basically just "utilities" and thus are much more susceptible to being replaced by the better mousetrap. Your points about SOL > ETH is an example of this....
So we should expect a race to the bottom with regard to utility chains, the cheapest + fastest + most features will win. Yesterday that was ETH, today it may be SOL, 10 years from now it may be something else.
Even if SOL / ETH / etc manages to hang on despite these pressures, there is no reason why the price needs to keep going up forever (I mean above and beyond normal inflation). ETH may survive for next 50 years being priced at ~$2000 indexed for inflation.....ultimately the price will converge upon cost + some profit margin above that.
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10 sats \ 0 replies \ @ek 10h
The ecosystem isn't dying; it's migrating.
AI? Rest of the text doesn't look like AI though
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0 sats \ 0 replies \ @joyfam 11h
L2s are the future! But ETH’s narrative squeeze is real. With BTC as gold and SOL as speed, what’s Ethereum’s edge?
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