The core reason for ETH's weak performance is that on-chain activities continue to weaken and ecological projects tend to become deserted. Many projects have migrated to Layer 2 or simply separated from Ethereum to build their own new chains. For example, MKR and DYDX have plans to build new chains.
This has led to a significant reduction in gas on the Ethereum chain, which is now regularly below 10 Gwei, which is already a historical freezing point. The inflation of ETH in the past month has been close to 30,000, further suppressing the secondary market.
Since there will be no problems with BTC, there is still a lot of imagination, and BTC is still the main one. However, there are hidden worries in ETH, so it is better to wait and see. A gentleman does not stand under a dangerous wall.
Many people say that BTC has little room for imagination? This can be seen from two aspects. First, BTC is supported by production costs, and it also has potential positive expectations such as halving and ETF. There is a lower limit when it falls; second, BTC plays a role in the current treacherous and changeable financial market. Its role is becoming more and more important, both as a safe haven asset and as an "anchor" in the crypto world. According to the founder of Bitmex, the Federal Reserve will inevitably turn on the money printing press in the future. According to the current debt scale in the financial market, there will be a massive amount of money. There is a big release, and BTC has the potential to reach 1 million US dollars, so it still has a lot of room for imagination. Recently, the Ethereum Foundation, Buterin and some big guys are selling ETH.
Ethereum still has hidden worries that we must pay attention to:
The first is that the issue of centralization has begun to emerge, with centralization of staking and centralization of relays. Liquidity staking protocols represented by Lido have accounted for 33% of the pledged volume, whether it is Buterin, the community or the Ethereum Foundation. Expressing concerns, the Ethereum Foundation admitted in a recent tweet that Ethereum currently has "corporatization, centralization, and systemic threats" and admitted that there are currently no good solutions. The Ethereum Foundation, represented by Vitalik Overall, there are collective mistakes in POS, such as being overly optimistic before going online and not fully predicting risks, and rushing to apply patches everywhere after going online. 90% of block settlements are controlled by 4 relays, and the centralization issue cannot be ignored.