I think it's important to look at other blockchains, what they are doing and how it's all going to see how that applies to other systems and learn from it.

Right now Ethereum continues it's downward trend. Even after being listed as a spot ETF the token has just been really under performing price wise as of late.

It's fallen harder then even Bitcoin and it starts to bring up the question of if layer two tokens are actully now starting to kill the blockchain. Less and less people are using it, there's now inflation because fees are no longer burning ethereum creating another price killer and it begs the question if you really need much ethereum at all now if you're not a developer and running a layer two yourself.

I'm going to factor some of these lessons into how I think they relate to the Hive Blockchain.

I think this is important to not because at least Ethereum has a gas fee on it. Hive on the other hand has no fees and only emissions and well a lot of emmissions as we are seeing. People are not only collecting massive 15% and once 20% yeilds on HBD and converting it into hive but powered up hive also has a 3.3% yeild on it not including the rewards pool rate on top of all of that. Creating a rather explosive amount of inflation in the overall economy with zero fees involved to burn any of it and remove it from circulation.

On top of that we now have VSC which will soon be a layer2 platform for the Hive blockchain kind of like hive-engine of course with some key diffrences.

The question then comes will people end up using this layer two system? My hopes are it's easier to develop on this layer 2 over hive-engine but so far I'm not seeing that that's the case and it might be dead in the water at launch unless they plan on launching some of their own projects on it and have others lined up.

But once again this creates a system in which hive really no longer is needed by the end user and instead the layer 2's are where the value is generated. But being that there's not fees involved will people stick around?

I firmly believe 95% of the people that hold and use hive are doing it because of the rewards pool. Removing that rewards pool is going to mean a large percentage of people are going to exit out of that holding and cash out further crashing the price even more.

Hive is actully in the death like spiral that Ethereum is so far showing and it actully might be worse!

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Ethereum is also in a spot now which many are starting to say reminds them of the Litecoin founder who sold out just before the price came crashing down.

This is because on chain we are seeing some rather large transactions taking place from the Ethereum main accounts dev, owner etc accounts that are massive such are a recent one of 35,000 ETH.

This is 100 million dollars per year which pays for salaries etc. and this is also why I say and will continue to say that a blockchain is just like a business.

So is Ethereum over?

It's starting to feel that way. Perhaps not over but in terms of price point there's not much holding it afloat at the moment unless some core changes are made in the near future this issue will only get worse.

Posted Using InLeo Alpha