The article discusses how Ethereum (ETH) has been underperforming against Bitcoin (BTC) and has fallen to levels not seen since 2020. Despite its growing utility, ETH's downward trend continues, and none of its use cases in the past five years have been able to establish its influence against BTC. The article also mentions that ETH had a dynamic trading day on February 3, experiencing significant liquidations and selling. Although the token saw a temporary rebound, it still raises questions about its potential to regain higher price levels. Moreover, the article highlights the outflow of staking on the Ethereum network, with validators giving up and deposits into the Beacon Chain contract slowing down. One of the reasons for the outflow is the uncertainty around ETH's status as ultra-sound money and its inflationary supply. Furthermore, the article mentions that Ethereum is relatively expensive to use, leading to the shift of activity to cheaper networks like Solana, Base, and TRON. L2 chains on Ethereum have managed to scale the network and retain some DEX activity, especially for large transactions. However, the article notes that the L1 blockchain is not built to extract value from L2 chains and that validators rely on block rewards and inflation for returns.



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