Ethereum’s Price Plunge: Is It Time to Panic or Just Laugh? πŸ˜‚

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In the grand theater of digital currencies, where the lights flicker and the audience holds its breath, Ethereum, that once-mighty titan of smart contracts, finds itself in a curious predicament. With the activation of EIP 1559, it seems Ether’s economic model has taken a detour, resembling more of a tech stock than the noble currency it once aspired to be. Meanwhile, Bitcoin, that steadfast “store of value,” stands tall, perhaps chuckling at Ethereum’s missteps. Oh, the irony! πŸ€¦β€β™‚οΈ

Ethereum’s Network Utility: A Beautiful Mirage

Ethereum (ETH), the largest smart contracts platform, is still hailed as “amazing,” a beacon of hope in the tech landscape. Yet, as Sam Kazemian, the founder of Frax and Everipedia, so eloquently pointed out on X, this inspiring journey has little to do with the price of ETH. It’s like watching a beautiful sunset while your wallet is empty. πŸŒ…

“This has been my thesis: Ethereum the network is amazing & going to be the major issuance ledger of the world. But very little, if any, of that value will be captured by the $ETH asset (due to ETH pivoting to a P/E DCF tech stock model). Empirical validation:”

β€” sam.frax (@samkazemian) April 10, 2025

As Ether continues to disappoint its loyal followers, Kazemian suggests that the narrative surrounding it is the real villain in this tragic tale. With the introduction of periodic token burn events thanks to EIP 1559, ETH has veered off course, adopting a utility model that leaves much to be desired:

“The biggest mistake was changing the social Overton window of EIP1559 burns as revenue/stock buybacks instead of ‘ETH is digital gold/silver/oil like $BTC & some of the commodity gets used up every block as part of the design.’ Instead, it’s now more tech stock instead of BTC-like.”

He even mused that if Bitcoin were to adopt a similar EIP 1559 model, the “digital gold” narrative would crumble like a poorly constructed sandcastle. 🏰

With its P/E DCF valuation model, ETH seems to be missing the boat on the robust utility of its underlying blockchain. It’s like having a Ferrari but only using it to drive to the grocery store. πŸš—πŸ’¨

As previously reported by U.Today, EIP 1559 was the most radical upgrade to Ether’s tokenomics, and boy, did it stir the pot!

ETH/BTC: A Tale of Woe and New Lows

Ethereum’s underperformance compared to its crypto counterparts has become the talk of the town, and not in a good way. The global crypto community is buzzing, and not with excitement. Nic Puckrin, the founder and CEO of Coin Bureau, shared some rather grim insights into this painful saga. It appears the average ETH owner is nursing some serious paper losses right now.

“Ethereum is having a rough year.

With ETHBTC hitting fresh 5-year lows, the data tells an uncomfortable story.

Will the bleed continue?

Here’s what’s really going on πŸ‘‡”

β€” Nic (@nicrypto) April 11, 2025

Ethereum has lost its narrative battle to Bitcoin, and other Layer 1s are happily munching on its lunch when it comes to smart contract deployment. Even the Layer 2s built on Ether are siphoning liquidity, leaving ETH gasping for breath.

Institutional money, swayed by the allure of spot ETF performance in the U.S., has clearly chosen Bitcoin over Ethereum. And let’s be honest, it’s not looking good for ETH in the global monetary injection game either.

So, brace yourselves, for more blood might be on the horizon for the ETH/BTC pair. As of April 12, in the early morning hours, ETH/BTC hit another disheartening low at 0.18666. This means that one Bitcoin is now worth 53.5 Ethers, the lowest rate since early 2020. Talk about a rough patch! πŸ“‰

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2025-04-12 16:22