With EIP 1559 activated, Ether’s financial mannequin turned just 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 value
Ethereum (ETH), the biggest sensible contracts platform, stays “superb” and remains to be on its strategy to turning into a significant issuance layer on the earth. On the identical time, this inspiring tech journey has nothing to do with ETH value efficiency, Frax’s Sam Kazemian shared on X.
This has been my thesis: Ethereum the community is superb & going to be the main issuance ledger of the world. However little or no, if any, of that worth can 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 unsuitable 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 unsuitable utility mannequin:
Greatest mistake was altering the social Overton window of EIP1559 burns as income/inventory buybacks as a substitute of ‘ETH is digital gold/silver/oil like $BTC & a number of the commodity will get used up each block as a part of the design.” As an alternative, it is now extra tech inventory as a substitute of BTC-like.
Additionally, he opined that, if an EIP 1559 analogue was carried out 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 stream) valuation mannequin, the ETH cryptocurrency fails to learn from the battle-tested utility of its underlying blockchain.
As coated by U.At the moment beforehand, EIP 1559 with its payment 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 state of affairs. He seen that the typical 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 relating 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 learn from financial injections globally.
That is why extra blood could be forward for the ETH/BTC pair.
At the moment, on April 12 in early morning hours, ETH/BTC hit one other backside at 0.18666. It implies that 1 Bitcoin (BTC) is now equal to 53.5 Ethers. That is the bottom fee for ETH/BTC since early 2020, knowledge says.
