Is Ethereum’s concept of ‘ultrasound money’ flawed? ETH is down 65% compared to BTC since transition

Since shifting to Proof-of-Stake, Ethereum’s value has plummeted by about 65% against Bitcoin, challenging its identity as ‘ultrasound money.’ The anticipated deflationary benefits have not been realized, with an increase in ETH supply.

As Ether’s transaction fees drop significantly, investor confidence in Bitcoin’s capped supply sees BTC outperforming ETH. The layer-2 networks also divert essential operations away from the Ethereum mainnet, complicating its deflationary narrative.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

More posts