With EIP 1559 activated, Ether’s financial mannequin grew to become much like that of tech shares, whereas Bitcoin (BTC) solidified its “retailer of worth” standing. That was a significant mistake for Ethereum that broken ETH, Frax and Everipedia founder says.
Ethereum’s community utility fails to catalyze ETH worth
Ethereum (ETH), the biggest sensible contracts platform, stays “wonderful” and remains to be on its approach to turning into a significant issuance layer on this planet. On the identical time, this inspiring tech journey has nothing to do with ETH worth efficiency, Frax’s Sam Kazemian shared on X.
This has been my thesis: Ethereum the community is wonderful & going to be the foremost issuance ledger of the world. However little or no, if any, of that worth will likely be captured by the $ETH asset (resulting from ETH pivoting to a P/E DCF tech inventory mannequin). Empirical validation: https://t.co/91N2Sx8Qg6
— sam.frax (@samkazemian) April 10, 2025
As Ether (ETH) retains disappointing its group, Kazemian sees the mistaken narrative as a root explanation for its underperformance. With periodical token burn occasions launched by EIP 1559 activation on Aug. 5, 2021, ETH pivoted to the mistaken utility mannequin:
Greatest mistake was altering the social Overton window of EIP1559 burns as income/inventory buybacks as an alternative of ‘ETH is digital gold/silver/oil like $BTC & among the commodity will get used up each block as a part of the design.” As a substitute, it is now extra tech inventory as an alternative of BTC-like.
Additionally, he opined that, if an EIP 1559 analogue was applied in Bitcoin (BTC), the “digital gold” narrative of BTC maxis would even be broken.
As such, with its P/E DCF (price-to-earnings discounted money movement) valuation mannequin, the ETH cryptocurrency fails to profit from the battle-tested utility of its underlying blockchain.
As lined by U.At present beforehand, EIP 1559 with its charge burn occasions was essentially the most radical improve of Ether tokenomics ever.
ETH/BTC routinely finds new low; is it over for Ether?
Ethereum’s (ETH) underperformance in comparison with main cryptocurrencies is within the highlight for the worldwide crypto group.
In his thread, Nic Puckrin, Coin Bureau founder and CEO, shared some causes for this painful scenario. He seen that the common ETH proprietor bears paper losses proper now.
Ethereum is having a tough 12 months.
With ETHBTC hitting contemporary 5-year lows, the info tells an uncomfortable story.
Will the bleed proceed?
Here is what’s actually occurring 👇
— Nic (@nicrypto) April 11, 2025
Ethereum (ETH) has misplaced its narrative battle to Bitcoin (BTC). Different L1s are consuming its lunch with regards to sensible contracts deployment. Even Ether-based L2s siphon liquidity and injury ETH’s worth.
Institutional cash — based mostly on spot ETF efficiency within the U.S. — clearly selected Bitcoin (BTC) over Ethereum (ETH). Additionally, it’s extremely unlikely to profit from financial injections globally.
That is why extra blood may be forward for the ETH/BTC pair.
At present, on April 12 in early morning hours, ETH/BTC hit one other backside at 0.18666. It signifies that 1 Bitcoin (BTC) is now equal to 53.5 Ethers. That is the bottom price for ETH/BTC since early 2020, information says.
