In the last three months, Ethereum suffered a 40 %loss in market value and has difficulty in attracting the attention of investors. Analysts say that Ethereum gives its value to the Layer-2 networks in order to maintain its growth and that this pose a risk for the future of the network.

Ethereum has been regarded as one of the biggest projects in the crypto currency world for years, while it has been difficult to maintain price stability.

Standard Chartered’s Digital Asset Research President Geoff Kendrick said in an interview with Financial Times that Ethereum supports Layer-2 networks and “commodifying himself” and therefore distributes a significant portion of his value free of charge.

According to Kendrick, Ethereum’s strategy may erode the value of the network in the long run and cause price drops.

Ethereum has experienced serious fluctuations in recent weeks, the price fell to $ 1.813. During spelling, ETH is traded at $ 2,054. However, market experts are suspected of whether this level is sustainable.

Kaiko’s research analyst Adam McCarthy said the reason for Ethereum’s price decrease could be for investors that it was no longer as “interesting ası it was as before. McCarthy said that new projects emerged as a rival to Ethereum and that many investors turned to alternative Blockchain networks.

Carol Alexander, Professor of Finance University of Sussex, drew attention to the internal disputes in the Ethereum ecosystem.

Alexander stated that the vision of the network of the network of decentralized finance (Defi) seems to be much more distant compared to a year ago ”and that the decision -making process of the community became“ complex and inefficient ”. According to him, the future of Ethereum remains unclear, which damages the trust of investors.

Ethereum’s governance model and decision -making mechanisms have been increasingly criticized. Former Ethereum Foundation Engineer Harikrishnan Mulackal criticized Ethereum’s administration and said that the network is “deprived of a clear and consistent vision”.

According to Mulackkal, Ethereum needs a stronger leadership to maintain its growth. He also argued that Ethereum should release faster updates.

Stating that the updates last long in the current system, Mulackkal said that the network should perform at least one hard fork (hard fork) in every quarter, otherwise Ethereum has the risk of repeating the same results for the last five years.

While uncertainties continue about the future of Ethereum, market experts and analysts say that the network needs important reforms to maintain competitive advantage. Although Ethereum’s value transfer to layer-2 solutions increases the scalability of the network, there are different views on the long-term effects of this situation.

Ethereum’s price performance, investor interest and ecosystem development will be closely monitored in the coming months. However, existing trends show that Ethereum may lag behind competition without a strong governance and innovation strategy.