Ethereum: Why Layer-2 Revenues and Activity are Declining
A recent article published on BTC-ECHO sheds light on the reasons behind the decline in revenues and activities on Ethereum's Layer-2 networks. Despite the successful Dencun upgrade, which significantly reduced transaction costs, this paradoxically led to a reduction in fees by almost 99 percent. This has had a direct impact on the income from these transactions.
In April, there was also a noticeable decline in network activity, partly due to the general downturn in the crypto market following the Bitcoin Halving. Interestingly, despite these challenges, the use of Ethereum as a means of payment within various networks remains strong, reinforcing its position as a leading digital asset.
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Ethereum Shock Forecast: A Multi-Year Downtrend?
On wallstreet:online, a grim forecast for Ethereum is discussed. An experienced trader anticipates a possible long-term downtrend, as current chart patterns do not suggest a bullish interpretation. This development could have profound consequences for investors.
However, there are also positive developments regarding technological advancements in Ethereum itself—particularly in the area of Layer-2 solutions and new proposals like EIP7702 to improve the system. Such developments could provide strong fundamental impulses, even though they might not result in significant price jumps in the short term.
The SEC vs. Ethereum: A Dance on the Regulatory Floor
According to a report from FXStreet German site, Ethereum is once again at the forefront of regulatory disputes with the SEC (U.S Securities and Exchange Commission). Joseph Lubin, co-founder of Ethereum and CEO of Consensys, openly confronted new regulatory approaches by Gary Gensler.
This discussion raises important questions about the future of Ethereum as a regulated financial technology or investment, especially in light of ongoing uncertainties around its legal classification as a security or commodity in various jurisdictions worldwide.
Further Information:
- BTC-ECHO | Bitcoin & Blockchain since 2014 ("Ethereum") - Read the source at BTC Echo
