Ethereum Crashes 45% From $4,950 Peak: Why Layer 2s Are Killing ETH’s Value

Layer 2 networks now handle most Ethereum activity, which means the mainnet processes fewer fee-generating transactions. Lower gas prices lead to weaker burn rates, cutting into the deflation story that once attracted investors.Ethereum's decline reflects problems that go deeper than normal market cycles. User activity has moved elsewhere, fees have collapsed, and institutions are starting to question whether ETH can still capture value from the ecosystem it helped build.Throughout these five months, the ch ...