Ethereum is experiencing a significant downturn, with core metrics nearing multi-year lows and a drastic decline in base-layer usage. In response, institutions like Galaxy Digital and Paradigm have reduced their Ether holdings substantially. This month has seen continued drops in Ethereum's base-layer activity while whales are treating the situation as a buying opportunity. Despite selling off significant amounts, institutions remain interested, evidenced by ongoing monitoring of ETH. Galaxy Digital recently moved 65,600 ETH to Binance and has seen its holdings drop from about 98,000 ETH in February to around 68,000 now. Paradigm has also reduced its Ether holdings from approximately 236,000 ETH in 2019 to just 2,873 ETH currently. Analysts attribute these trends to concerns over decreasing protocol revenue and weakening tokenomics. Furthermore, Ether has reverted to an inflationary state post-Merge, contributing to apprehensions around its economic model. Vitalik Buterin's recent RISC-V proposal suggests a radical shift in Ethereum's architecture, indicating that current design limitations cannot be improved incrementally. Institutional outflows from ETH funds have also been notable, standing at $772 million over eight weeks, reflecting a broader reconsideration of Ethereum in favor of alternatives like Solana.

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