Ethereum ‘commoditized itself’ by shifting value to layer-2s, Standard Chartered says

Standard approved analysts say that Ethereum goes through a “quarantine crisis”, with ETH which has trouble containing about $ 2,000.

Ethereum (Ethn) is apparently stuck in limbo because it gives its value for free ADDER-2 networks while fighting to keep interested investors. The second global cryptocurrency by market capitalization has dropped 40% in the last three months, with Standard chartered Analysts now claim the network if they are faced with a “quarantine crisis”.

In a interview With the Financial Times, the manager of digital assets of Standard Charterd, Geoff Kendrick, said that the network “gave value for free” as with layer 2 networks, Ethereum has “essentially commodity itself”.

Now, Ethereum has trouble preventing its price from falling even further. At the time of the press, ETH is negotiated at around $ 2,054, after plunging $ 1,813 earlier in March. Kaiko’s research analyst Adam McCarthy says the decline could be linked due to the fact that Ethereum “is simply not interesting for most people”.

“It is difficult to become too enthusiastic about incredible engineering exploits when there is [are] So many competing things now in the attention economy. »»

Adam McCarthy

At the same time, the developers of Ethereum are struggling with internal disagreements and the activity of users on the network did not resume, noted Carol Alexander, professor of finance at the University of Sussex. She added that the decentralized financial vision now feels “much further now than a year ago” and that decision -making in the Ethereum community has become “a bit of a mess”.

Ethereum management has been examined recently as the former engineer of the Ethereum Harikrishnan Mulackal Foundation critical The governance of the network, saying that it suffers from a “lack of clear and coherent vision”.

According to Mulackal, without stronger leadership, Ethereum could stagnate, suggesting that the network should put pressure for faster updates and ship “a fork lasts each quarter”. Otherwise, he said, Ethereum may reproduce “exactly the same result” as the last five years.