Ethereum has been facing challenges, including price drops, governance issues, and high gas fees, which have raised concerns about its long-term viability. The recent theft of $1.4 billion worth of Ethereum in the Bybit hack and the network's highest weekly outflows have further impacted its performance. Ethereum's declining price and dwindling investor confidence have led to a decrease in its spot ETF outflows. Factors such as tariffs and inflation in the US economy have also affected Ethereum's performance. Internal challenges, including governance issues and inefficient resource allocation, have contributed to Ethereum's struggles. Ethereum's dominance in the DeFi sector, with a total value locked of over $48 billion, has been a positive point. However, high gas fees and slow transaction speeds have deterred users. Ethereum has attempted to address scalability issues through architectural changes and the introduction of Layer-2 solutions, but these have not fully resolved the problem. Ethereum faces increased competition from other networks like Solana. The Ethereum Foundation has faced criticism over its management and spending priorities, leading to a lack of trust within the community. Leadership changes have recently been announced, but opinions on the new leadership remain split. Experts emphasize the need for Ethereum to improve its scalability to maintain its competitive position. Some believe Ethereum has the resources to maintain its status as the second-largest cryptocurrency, while others are more cautious about its future outlook. The Ethereum Foundation's management during this period of competition will significantly impact the network's success.



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