So far, why is the performance of the Ethereum market not "satisfactory"? The reasons are as follows:

1. Money flow and market preferences
The impact of attracting money from Bitcoin is noticeable.
Institutional funds tend to allocate spot Bitcoin ETFs ( like BlackRock, Fidelity, etc. ) due to the simplicity of the "digital gold" narrative and its consistent agreement, while the use cases of Ethereum are considered more complex and lack additional fund support of the same scale.
Ethereum ecosystem narrative suffers from a lack of
The market focus has declined due to the lack of sustained explosive growth that the previous bullish cycle relied on, such as DeFi and NFT. Additionally, the new narrative ( like RWA) has not yet made a significant impact.
Secondly, the technical and environmental challenges
Mainnet request for Layer 2 flow
The emergence of Layer 2 networks like Arbitrum and Optimism has increased the efficiency of the Ethereum ecosystem, but the transaction volume on the main network and gas fee revenues have significantly decreased, weakening the deflationary effect of ETH (. The average daily burn amount has dropped from 2000 ETH to 500 ETH ).
The delay in technology upgrades and competitive pressure
The expansion of Ethereum 2.0 has been postponed several times, and the actual TPS is still lower than emerging blockchains like Solana (, which can reach 100,000 transactions per second ), leading to a migration of developers and users. Solana has become a hub for Meme coins thanks to low costs and high performance, resulting in increased money transfers.
Thirdly, the market structure and the imbalance of supply and demand
Increased supply pressure
Increasing the amount of collateral opening after the merger (, especially protocols like Lido), in addition to the lack of significant institutional entry, which led to a weak buying incentive from individual investors, resulting in continued selling pressure.
The major whale share has not been traded enough.
The early shareholders ( who only cost a few dollars ) did not sell large quantities, and the market lacks support from "diamond hands", making the pressure on the main price susceptible to selling risks.
Fourthly, the impact of the macro environment and policies
Uncertainty in Federal Reserve policy
Expectations of interest rate hikes and inflationary pressures lead to a flow of money towards safe assets like gold, while the attractiveness of Ethereum as a high-risk asset declines.
The futures market dominates trading
The trading share of Ethereum derivatives is high, and the volatility of leveraged funds increases, leading to price fluctuations, which weakens the support for purchasing in the spot market.
Five, short-term negative events
Impact of security events
The North Korean hackers' attack led to the sale of 400,000 pieces of Ethereum, which affected market sentiment.
Vitalik's sales and public opinion controversies
The founder's sale raised doubts about the market's trust in the team, and some investors moved to other targets.
Prospects of the Future
Despite the short-term pressure, Ethereum still has long-term potential:
Technical Upgrade: Pectra has been upgraded and improved in storage and integration with Layer 2, which may increase the value of the network.
Positive Policy: If the United States agrees to the collateralization of the (ETF) stock trading fund for Ethereum, it could attract a flow of institutional funds.
Environmental recovery: If RWA (real assets) explode, it could become a new catalyst.
In light of the above, Ethereum's weak performance is a result of the interaction of multiple factors, but its central position in the decentralized ecosystem has not changed, and in the future, it should rely on technological innovation and a break in the narrative to regain market interest.