Why Etherum lags for Bitcoin-analysts to state inflational problems, replenishing in Dencun upgrades and Solan Memen coins

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Ethereum (CRIPTO: El), the second largest cryptocurration of market capitalization, compared to the elderly brother, Bitcoin (CRIPTO: Btc), over the past year.

Think about this. Bitcoin jumped 32% in the year, reached all the time of $ 109,000. His share in the total cryptocurrency market was expanded from 52% to 60%.

On the other hand, Etherum agreed 39% at the same time, reducing its market share of 16% to 8%.

The estimated gap has caused the discussion about the Ethereum role in the cryptocurnancy hierarchy and its future bened benzene exchange rate has been discussed with several analysts to understand factors that contribute to the current decline in progress.

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Jeffrey Hu, Head of investment research in the Digital Assets Manager Hashkei CapitalHe believed that the mistake was lying in Etherhere’s economic model.

“EIP-1559 activation allows you to burn the deflation when the etheric activity is high at ethereum; however, it further supports the applications on the chain, Etherum must be reduced,” said Hu said.

ETREMEM LONDON HARD FORK, DUBBED EIP-1559He introduced a mechanism for burning the network tokens. According to this mechanism, basic fee, ie. The minimum fee per transaction is removed to add deflational pressure to the ET and enhancing its value.

So, what exactly is the problem?

Hu claimed to climb layers-2 blocks and Dencun Upgradewhich reduced fees on L2 per order of size, took over the activity on the chain away from the basic Etherum chain, resulting in inflation.

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According to ultrasonic money, Ethin deflation rate began to slow down in May 2024. years, and since February, the Coin’s offer increased from the beginning.

Source: ultrasonic money

Trever CoverkoWeb3 Investor and co-founder Sapien, resonated by these observations.

“Etherum struggles to establish a narrative as L2 is aquitutively and is not extractive to the main chain,” he added.

However, L2S was not the only competition he had encountered in Etherum.