Matthew Sigel from VanEck has raised concerns about Ethereum's future, suggesting that the dominance of layer-2 networks could significantly impact ETH's market capitalization. He noted that Ethereum's changing fundamentals may warrant a revised price projection, dropping from an anticipated $22,000 by 2030 to approximately $7,300 if current trends persist. Data shows that layer-2 networks are extracting more value from Ethereum than expected, leading to an inflationary supply of the asset. Sigel indicated that this shift could provoke the Ethereum community to adjust their roadmap, potentially through fee-sharing models between Ethereum's mainnet and its layer-2 networks. Ethereum co-founder Vitalik Buterin emphasized the need for a cohesive ecosystem to prevent inconsistencies in user engagement. Furthermore, Ethereum's recent struggles are exacerbated by poor performance in institutional investments compared to Bitcoin, as evidenced by significant outflows in spot Ethereum ETFs since their launch. Overall, Sigel contends that if the situation doesn't improve, Ethereum's profitability and price could face serious challenges.

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