The Q3 crypto market was marked by low fees on the chain, a growing Bitcoin dominance and Ethereum’s struggles with inflation and poor performance.
Ethereum’s (ETHThe identity of Bitcoin (and other cryptocurrencies) is evolving as the model moves from one that deflation to inflation.BTC) dominance.
You can also find out more about the following: an X article On Oct. 4, IntoTheBlock’s Head of Research Lucas Outumuro stated that while on-chain fee levels have shown a small rebound since September, Ethereum is still struggling with significant reductions in fees that are hindering its performance.
“While fees have bounced back slightly in September, Ethereum’s trend towards substantially lower fees is a key contributor to ETH’s underperformance as the market effectively rejects the thesis of ETH as money.”
Lucas Outumuro
Outumuro claims that Ethereum, altcoins, and Bitcoin have all reached new lows for the year. Bitcoin fees have plummeted 86% in the last quarter. This reflects a market unfazed with this drop.
“The divergence between BTC and ETH’s price, while both of their fees plummeted, suggests one of them is being valued as money and the other one more closely tied to its cash flows.”
Lucas Outumuro
Dencun’s upgrade that introduced EIP 4844 has made a significant impact on the industry. impact On Ethereum’s Economics Mainnet fees fell to all-time highs despite a surge in layer 2 transactions, raising questions about Ethereum’s inflationary narrative. Less fees means less ETH will be burned, causing it to grow. “inflationary again after the Ethereum community consistently focused on its deflationary path before that,” Outumuro made a point.
Since the Dencun upgrade the ETH/BTC rate has declined by almost 30%, signalling an “identity crisis” Outumuro claims that Ethereum will be the future of cryptocurrency. According to Outumuro, Ethereum’s current price is $2,390. That’s more than 50% lower than its three-year high.
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Source: crypto.news
