The worst thing that happened to Ethereum
Ether has declined nearly 70% compared to Bitcoin since the Merge in September 2022, raising concerns about Ethereum's market position and price future. Originally promising improved energy efficiency and a disinflationary effect, Ethereum's growth rate has stagnated around 0% as a result of decreased on-chain activity leading to lower gas fees and fewer ETH burns. On-chain data indicates that long-term holders have reduced their Ethereum holdings since the Merge, contrasting with increased Bitcoin wallet holdings. This shift has benefited Bitcoin and Solana, with Solana gaining traction in DeFi and NFT projects. Some observers, like Alphractal's CEO, deem the Merge as detrimental to Ethereum, while co-founder Joseph Lubin views market fluctuations as typical. Despite the oversold conditions in the ETH/BTC pair indicating potential for a short-term relief rally, a decisive drop below key support levels may signal further declines.
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