Cryptocurrencies
Crypto’s ‘Middle Child’ Ethereum Flounders as Rivals Gain Ground
- The blockchain has seen fees slide after technical upgrades
- Criticisms have weighed on Ether, which has underperformed
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Ethereum faces pressing questions over its direction as a rejigged user experience saps activity and fees, stoking uncertainty about whether the blockchain will continue to underpin commerce in crypto.
Critics point to a growing reliance on so-called Layer-2 blockchains, built on top of Ethereum to improve otherwise clunky and costly transactions. Layer-2 operators like Arbitrum and Optimism have reaped the rewards. Since March, Layer-2 transactions are up 430%, while fees collected by Ethereum have fallen 87% in the same period, data compiled by Bloomberg show.