Standard chartered analysts say Ethereum has been experiencing a “midlife crisis” and ETH is struggling to hold around $2,000.
Ethereum (ETH) appears to be caught up in the frontier as it gives free value to its Layer 2 network, while struggling to keep investors interested. The world’s second largest cryptocurrency by market capitalization has fallen 40% over the past three months, with analysts who have received standard charters now saying that if they are facing a “midlife crisis.”
In an interview with the Financial Times, Geoff Kendrick, head of digital asset research at Standard Chartered, said that, as with Layer 2 networks, the network “given value for free.”
Now, Ethereum is struggling to prevent prices from falling further. As of press time, ETH is trading at around $2,054 after plunging to $1,813 at the beginning of March. Kaiko research analyst Adam McCarthy says the decline may be linked due to the fact that Ethereum “is not of interest to most people.”
“Now, when there are so many things to compete in the attention economy, it’s hard to be too excited about the incredible feat of engineering.”
Adam McCarthy
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At the same time, Ethereum developers suffer from internal disagreements and no user activity on the network has been featured, says Carol Alexander, a professor of finance at the University of Sussex. She added that her decentralized financial vision now feels “a lot further apart than a year ago,” and that decision-making in the Ethereum community has become a “smacking hell.”
Ethereum’s instructions have recently been under scrutiny as former Ethereum Foundation engineer Harikrishnan Mulackal criticised the network’s governance and suffered from a “lack of a clear and cohesive vision.”
With each Muracal, without stronger leadership, Ethereum could stagnate, suggesting that the network should drive faster updates and ship “one hard fork per quarter.” Otherwise, he said Ethereum risks replicating “the exact same outcome” as the last five years.
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