Crypto: Can Ethereum 2.0 Still Deliver On Its Promises?

The Ethereum crypto turned green at the announcement of the FED’s key rate cuts, following Bitcoin’s lead. But looking back on its journey, the initial euphoria of Ethereum 2.0 leaves a bitter taste. Despite a grand start with Proof-of-Stake (PoS), hopes for a revival seem to be fading. This unexpected turnaround opens a crucial debate: is the future of ETH really “ultra sound money”?

Crypto ETH: The ambitious but disappointing transition

When Ethereum unveiled its Ethereum 2.0 in August 2022, the crypto community was expecting an upheaval. Goodbye to the energy-intensive Proof-of-Work (PoW), welcome to Proof-of-Stake which was supposed to transform Ethereum into an eco-friendly and ultra-efficient machine.

But two years later, the results are less glorious. Far from the heights of 2021, Ethereum has lost nearly 50% of its value.

• Ethereum 2.0 launched: 2022;
• Value loss: 50%;
• Current price: $2,462.40 (+4.54% over 24h).

However, some innovations such as EIP-1559 (London Hard Fork) have allowed to burn tokens, making ETH slightly deflationary.

Vitalik Buterin, with his provocative spirit, questioned: “If Bitcoin is hard money, is Ethereum becoming ultrasound money with a decreasing supply?“.

The question remains open, but for now, the effect of Ethereum 2.0 is less radical than expected.

Ethereum: An uncertain future despite its advancements

While Ethereum seemed to be off to a good start with its eco-friendly transition and technological improvements, the reality is more nuanced. The promise of better performance thanks to PoS has not yet convinced the market, and massive adoption is still not happening.

Meanwhile, other competing blockchains are gaining ground, casting doubt on Ethereum’s future dominance.

The enthusiasm for Ethereum 2.0 may have been exaggerated, especially compared to faster and more scalable blockchains like Solana or Avalanche.

The daily transaction volume remains high, but the ecosystem has not yet managed to overcome its technical challenges to convince long-term investors. So, will Ethereum eventually rebound or will it remain an unfulfilled promise?

As a reminder, the “Endgame” of Ethereum 2.0, revealed by Vitalik Buterin in 2021, gives hope for a second chance. But the road ahead is long.