With EIP 1559 invigorated, Ether’s economic model was similar to the economic model of high-tech stocks, while Bitcoin (BTC) solidified its “value store” status. That was a huge mistake for Ethereum, which damaged ETH, and the founders of Everipedia say.
Ethereum network utility fails ETH price catalyst
Ethereum (ETH), the largest smart contract platform, is still “surprising” and is still moving forward to becoming the leading publishing tier in the world. At the same time, this exciting technological journey has nothing to do with ETH price performance, Frax’s Sam Kazemian shared with X.
This was my paper. The Ethereum Network is incredible and will become the world’s leading publication ledger. However, most of its value is rarely captured by $ETH assets (using Pivoting for the P/E DCF Tech Stock model). Empirical verification: https://t.co/91n2sx8qg6
– sam.frax (@samkazemian) April 10, 2025
As Ether (ETH) continues to disappoint the community, Casemian sees the wrong story as a cause of poor performance. The regular tokenburn event introduced by EIP 1559 Activation on August 5, 2021 caused ETH to pivot into the wrong utility model.
The biggest mistake was changing the social overton window on the eIP1559. “ETH is digital gold/silver/oil like $BTC, so revenue/stock buybacks are used as part of the design.
He also said that if EIP 1559 analog was implemented in Bitcoin (BTC), the BTC Maxis’ “digital gold” story would also be damaged.
Therefore, due to the P/E DCF (price-to-revenue discounted cash flow) valuation model, ETH Cryptocurrency cannot benefit from the underlying blockchain combat testing utility.
As previously covered by U.Today, the EIP 1559 was the most fundamental upgrade of ethertaloknomics with fee-burning events.
ETH/BTC everyday finds new lows. Has the ether finished?
Ethereum’s (ETH) unperformance compared to major cryptocurrencies has fallen into the spotlight for the global crypto community.
In his thread, Nic Puckrin, founder and CEO of Coin Bureau, shared several reasons for this painful situation. He realized that the average ETH owner is now owing a paper loss.
Ethereum is having a tough year.
When ETHBTC hits a fresh low of five years, the data tells off unpleasant stories.
Will the bleeding continue?
This is what’s really happening
– Nic (@nicrypto) April 11, 2025
Ethereum (ETH) lost the story battle with Bitcoin (BTC). The other L1s have lunch when it comes to smart contract deployments. It can also damage the liquidity of ether-based L2S Siphon and the value of ETH.
The institutional funding based on US spot ETF performance clearly chose Bitcoin (BTC) over Ethereum (ETH). Also, you rarely benefit from financial injections worldwide.
This is why blood in ETH/BTC pairs is increasing.
Today, April 12th, early morning hours, ETH/BTC hit another bottom at 0.18666. This means that 1 Bitcoin (BTC) equals 53.5 ether. This is the lowest ETH/BTC rate since early 2020, the data said.
