Technical analysis by BrankoPetruci about Symbol ETH on 12/21/2024

Absolutely yes. (Solana made almost 12x in the same period)🔹So is its throne in danger? Absolutely not!🔸So why did it stay cheap? A few possible reasons: Transition to a modular architecture, therefore reduced fees, fewer token burns, concessions made to Layer 2s, and transferred technical capabilities. If you have been following the Ethereum ecosystem closely, Layer 2 (and now Layer 3) networks and related services have been receiving extraordinary attention for the last 1.5 years. A strong community and economic support are necessary for the sustainability of a giant ecosystem like Ethereum. Let's take a look at this part: 1⃣ Ethereum's Community and Economic Structure Yes, the Ethereum ecosystem has come to these days thanks to a strong community and economic support. However, the rise of Layer 2 solutions in recent years has reduced activity on Ethereum's base layer. This has resulted in lower network fees and fewer token burns. In other words, in a way, Ethereum's economic model is evolving with the growth of Layer 2s. But I don’t think this is a situation that endangers Ethereum’s throne; on the contrary, it makes the ecosystem more scalable and sustainable. If you think long-term, Vitalik and his partners are taking steps that will extend its survival. 2⃣ The Role of Layer 2 Layer 2 networks allow transactions to be made at much lower costs compared to Ethereum’s main chain. In addition, these networks attract more users to Ethereum by improving the user experience. Projects such as Optimism, Arbitrum and zkSync stand out with both their technical infrastructure and user-friendly solutions. However, the success of these networks is not independent of Ethereum’s success. Layer 2s operate using Ethereum’s security and decentralized structure. Therefore, the growth of these networks will have a positive impact on the Ethereum ecosystem in the long term. 3⃣ Ethereum’s Long-Term Vision Ethereum’s transition to a modular architecture aims to ensure the long-term sustainability of the ecosystem. This transition also enables Ethereum to be adopted by more users and developers. Updates like Sharding allow the network to handle more transaction volume without sacrificing decentralization, while increasing its scalability. ⚡️As a result, Ethereum may seem cheap, but this may be temporary. The strong fundamentals and innovative vision of the ecosystem make the Ethereum ecosystem still the strongest candidate for leadership in the blockchain and crypto world and in the long term. Therefore, to understand the value of Ethereum, you need to look not only at its price, but also at the ecosystem and development process behind it, right, friends? 🙋🏻‍♂️