Anders Helseth, vice president and head of research in crypto analytics firm K33 , shares a surprising bearish prediction for Ethereum as a technology and Ether as an asset.According to his thread shared on March 16, 2023, Ethereum's dominance in the smart contract segment might be on borrowed time. Its users avoid switching to competitors due to problems with moving liquidity out of Ethereum .
As such, in general, people are still using Ethereum because they cannot stop doing so. Moving liquidity through bridges is still too risky and too costly.This, in turn, is bearish for Ethereum in the long term: once the Web3 segment becomes truly chain-agnostic , money will leave Ethereum .Even if this scenario is not valid, Ethereum might lose its audience due to the irrelevance of the modern use cases that are associated with the necessity of storing ETH .
Last but not least, the evolution of Ethereum L2s might make its main network obsolete: the problem of block space will be solved for good: Scaling solutions make blockspace virtually infinite. Scaling solutions reduce the ability to capture the willingness to pay for transactions. So, even if everything is scaled on Ethereum, transaction fees would be so cheap that Ether captures little value
As covered by U.Today previously, bridge security is among the most serious roadblocks for blockchain scaling.