Sonic Labs co-founder Andre Cronje has explained the reasons for Ethereum’s (ETH) faltering price performance in recent months. The DeFi godfather points to rising competition from Solana and Tron and internal wrangling on Ethereum as reasons for the network’s decline.
Andre Cronje Identifies A Boatload of Factors Affecting Ethereum
As analysts continue to scratch their heads over Ethereum’s underperformance, Andre Cronje has thrown his hat in the ring to explain the asset’s decline. Cronje took to X (formerly Twitter) to rationalize falling Ethereum prices in the face of major catalysts for the network.
Top on the list for Cronje are layer 2 projects “ruining” user experiences via fragmented liquidity and the use of centralized sequencers. Cronje notes that the decision of L2 projects to dump ETH adversely affects price performance. Furthermore, short pressure from USDe and a botched scaling roadmap contribute their share to falling Ethereum prices.
Cronje argues that ETH defenders are podcasters rather than engineers while the question of network representation remains unsettled. The recent appointment of Ethereum Foundation directors does little to convince Cronje to invest in the largest altcoin.
Cronje Will Rather Invest In Other Altcoins Over Ethereum
The Sonic Labs co-founder confirmed that the dour sentiment surrounding Ethereum is linked to increased competition from other blockchains. Rival blockchains like Solana (SOL) and Avalanche (AVAX) offer improved speed and finality while offering superior user interfaces.
For Cronje, these competing blockchains offer direct support to native projects rather than opting for neutrality. He argues that teams are just not building on Ethereum and are opting for other blockchains to host their projects.
“Hell, I don’t invest, but if I did, I would choose Solana, Tron, and XRP over ETH,” said Cronje.
Ethereum’s Grim Price Prediction
After the largest altcoin slipped below the $2,000 mark, on-chain analysts presented theories of ETH falling to $1,000. Ethereum currently trades at $2,215 with whales scooping up one million ETH on a discount.
Despite key catalysts like ETH ETF approvals and inclusion in the Crypto Strategic Reserve, the asset’s price performance is underwhelming. Analysts have their sights on resistance levels at the $2,857 mark and $2,084 for support as the assets navigate a choppy season.
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