The falling appeal of Ether (ETH) as investments results from the value of the weakening of layer 2 from the main network and the lack of dismissal of the community in excessive creation of tokens, says capitalist Crypto Venture Capital.

“The first reason for this is the greed of ETH L2s siphoning value with L1 and social consensus that excess token was a-ok”, partner of castle island ventures nothing carter he said in the post of March 28.

The ether “died with his own hand”

“Eth was buried in an avalanche of his own tokens. He died with his own hand,” said Carter. He said this in response to the theorem of the founder of Featherlight Capital, Quinn Thompson, that the ether is “completely dead” as an investment.

“A network of market capitalization worth $ 225 billion, which records a decrease in transaction activity, user growth and fees/revenues. There are no investment cases here. As a network with public utility? Yes. As an investment? Absolutely not”, Thompson he said in the post of March 28.

The ratio of ETH/BTC – which shows the relative strength of the ether compared to Bitcoins (BTC) – is 0.02260, and its lowest level in almost five years, According to For TradingView data.

At the time of publication, Ether trades at USD 1,894, which is a 5.34% decrease in the last seven days, According to For Coinmarketcap data.

Meanwhile, the Cointelegraph magazine announced in September 2024 that revenues from the fee for Ethereum “collapsed” by 99% in the last six months, because “L2S mining” consumed all users, transactions and revenues of fees, while not contributing to the basic layer.

Around the same time, the partner Cinneamhain Ventures, Adam Cochran, said that developed can solve the problem of the Ethereum Layer-2 network drawing liquidity and revenues from the basic layer of Blockchain.

Cochran said that developed can “directly affect the eThereum’s monetization, making a fairly fundamental change in motivational structures.”

Related: Ethereum Futures Premium Hits 1+ years nothing – is the time to buy the ETH bottom?

Despite the optimism at the end of last year, around the ether reached USD 10,000 in 2025 – especially after reaching USD 4000 in December, the same month Bitcoin has been covered by $ 100,000 for the first time – since then he recorded a keen decline with a wider slowdown in the cryptographic market.

The Khartered standard has added to the Bearish perspective using the customer’s letter of March 17, which revised its end of the price of 2025 ETH from USD 10,000 to USD 4000, which is a 60%reduction.

However, several cryptographic traders, including the nicknamed traders of Doctor Profit and Merlijn, is “incredibly stubborn” and argues that the ether could Be “the best opportunity on the market”.

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