Ethereum (ETH) market will continue to decline in 2022, Says Tech Investor Tascha

Tascha, a macroeconomist and technology investor, believes that the Ethereum (ETH) market will continue to decline in 2022, as growing friends push on a blockchain that has yet to produce a pivot in its value proposition.

According to BreatheInCrypto, competing Layer 1 (L1) blockchains like Avalanche (AVAX), Solana (SOL), and Terra (LUNA) has been “expanding quicker with more current technology better for scaling” in macroeconomics.

In contrast, she added, “Upgrading an established network like Ethereum is not easy and development is very slow,” referring to the fall in the number of ether in the overall AUM in the decentralized finance (Defi) ecosystem. Existing Layer Two deployments have stopped, and expectations for L2 zero-knowledge accumulation solutions, which have yet to be released, “are so high that it is already impossible for them not to disappoint,” according to Tascha.

The world is not coming to a halt until Ethereum settles

Existing Layer Two deployments have stopped, and expectations for L2 zero-knowledge accumulation solutions, which have yet to be disclosed, “are so high that it is already impossible for them not to disappoint,” according to Tascha.

“Until Ethereum settles, the world will not come to a halt.,” she said. “It’s difficult to imagine a scenario in which Ethereum outperforms competing options.”

While Ethereum sees the uncertainty, the three-layer one competitors closest to the asset – Solana, LUNA, and Avalanche – who have now gained meme status as SoLunAvax, see none.

As indicated by price rise and total value locked in, all three were fully accepted in 2021. Tascha outlined how SoLunAvax might provide the “highest reward/risk ratio in crypto” for the next two years in a Twitter discussion.

The most significant benefit for Solana is its monolithic nature. “Solana has the market on its own with a clear value proposition for use cases that benefit from a single state throughout the platform and full, beautiful composability,” she remarked.

Sharding is a method employed by blockchain networks or companies to help in the processing of more transactions per second, while a layer-one blockchain is a collection of solutions built on top of an existing protocol, such as Ethereum or Bitcoin, to increase scalability.

Layer-two solutions, which are often controlled by a third party, link to an underlying layer-one blockchain to boost efficiency.
The premise is that in order for blockchain networks to become viable alternative payment systems, they must be capable of managing a huge amount of transactions, data, and users – a concept known as scalability.