Crypto Ethereum turned green on the news of the FED’s rate cut, following Bitcoin’s lead. But looking back, Ethereum 2.0’s initial euphoria leaves a bitter taste. Despite a flying start with Proof-of-Stake (PoS), hopes of a revival seem to be fading. This unexpected turnaround opens a crucial debate: is the future of ETH really “ultra sound money”?
Crypto ETH: The ambitious but disappointing transition
When Ethereum unveiled its Ethereum 2.0 in August 2022the crypto community was expecting a shake-up. Exit the energy-hungry Proof-of-Work (PoW), make way for the Proof-of-Stake which was supposed to transform Ethereum into an ecological and ultra-efficient machine.
But two years later, the record is less glorious. Far from the peaks of 2021, Ethereum has lost nearly 50% of its value.
- Ethereum 2.0 launched: 2022;
- Loss of value: 50%;
- Current price: $2,462.40 (+4.54% over 24 hours).
Yet, some innovations like the EIP-1559 (London Hard Fork) have allowed burn tokensmaking ETH slightly deflationary.
Vitalik Buterin, with his provocative spirit, asked: “ If Bitcoin is solid money, does Ethereum become solid money?ultrasound money with decreasing supply? “.
The question remains open, but for now, the effect of Ethereum 2.0 is less radical than expected.
Ethereum: An uncertain future despite its advances
While Ethereum seemed to be off to a good start with its ecological transition and technological improvements, the reality is more nuanced. The promise of better performance through PoS has not yet convinced the marketand mass adoption is still not there.
Waiting for, Other competing blockchains are gaining groundcasting doubt on Ethereum's future dominance.
The enthusiasm for Ethereum 2.0 may have been overblown, especially in the face of faster and more scalable blockchains like Solana or Avalanche.
Daily transaction volume remains high, but the ecosystem has yet to overcome its technical challenges to convince long-term investors. So, will Ethereum eventually bounce back or will it remain an unfulfilled promise?
As a reminder, the “Endgame” of Ethereum 2.0, revealed by Vitalik Buterin in 2021, gives hope for a second chance. But the road remains long.
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