In the volatile world of cryptocurrency, few moments cut as deep as the one on April 22, when the ETH/BTC exchange rate dipped to 0.01766 — its lowest point since 2020. For long-term holders, this wasn’t just a market dip. It was a psychological breaking point.
Lin Feng, who had faithfully dollar-cost-averaged into Ethereum for four years, finally snapped. “This time, I really sold,” he posted on social media — not with relief, but heartbreak. His words echoed across a growing digital sanctuary known as The Ethereum Asylum, where believers once devoted to the blockchain’s promise now gathered not to celebrate gains, but to mourn losses and question their faith.
The Birth of a Digital Refuge
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The group didn’t start as “The Ethereum Asylum.” Originally named “I Was Wrong, I Regret Buying Ethereum,” it was born out of panic during a brutal market crash on February 3, 2025, when ETH plummeted 25% to $2,080.19.
Orange, a former VC professional who entered crypto in 2021, found himself shaken as prices fell below $3,300. What began as a private chat among six friends quickly swelled with others drowning in regret — including major holders like Big Orange and Du Jun, VC executives, and longtime developers.
Within weeks, the group hit 250 members — a number Orange deliberately capped as a self-deprecating joke: “Buying Ethereum is what two hundred fifties do.”
As hope faded, so did the chorus of “buy the dip” voices. Jokes replaced conviction. Someone quipped that anyone shouting “bottom!” should call Dr. Yang Yongxin — a notorious figure associated with electroshock therapy — to get “shocked back to reality.” Thus, the name evolved into The Ethereum Asylum, a digital ward for those who believed too hard and too long.
Orange, the reluctant administrator, became both observer and inmate. He watched members oscillate between despair and denial, clinging to memories of better times — especially the golden era of DeFi Summer.
DeFi Summer: When Ethereum Ruled the World
Back in 2020, Ethereum wasn’t just leading the blockchain revolution — it was the revolution. Uniswap surpassed Coinbase in trading volume. Compound ignited the liquidity mining frenzy. Decentralized finance (DeFi) wasn’t just a niche; it was a cultural movement.
For Orange and others like him, this was more than an investment opportunity — it was ideological awakening. Vitalik Buterin’s vision of a decentralized future, powered by sharding, zero-knowledge proofs (ZK), and Layer 2 scaling, felt inevitable.
Lin Feng bought ETH that summer, electrified by the idea of Ethereum as a “world computer.” To him, holding ETH was value investing at the human civilization level.
VCs poured billions into Ethereum’s ecosystem. Projects like zkSync (valued at $2B), Starknet ($8B), and Scroll ($1.8B) attracted massive funding based on technical promise alone. The narrative was clear: Ethereum would scale, dominate, and redefine computing.
But narratives change.
The Narrative Collapse: From Innovation to Meme
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Today’s market no longer rewards technical depth. It rewards speed, virality, and memes. Solana — once mocked as unreliable — now hosts thriving consumer apps thanks to its raw performance. Ethereum, meanwhile, struggles with high fees and fragmented user experience across its Layer 2 networks.
Big Orange, a prominent figure in the asylum and self-proclaimed “E Sentinel,” admits the truth: Ethereum has no new story.
“There’s been no paradigm shift,” he tweeted in March 2024. “If Ethereum doesn’t hit new highs by May, I’ll eat shit.” A bold bet — but also a cry for hope in a barren landscape.
The once-thriving chain is now plagued by low activity. EIP-1559’s deflationary burn mechanism — designed like an elegant irrigation system — runs dry without sufficient transaction volume. Worse, Layer 2s meant to scale Ethereum have instead siphoned value away from the mainnet.
Each L2 competes for user assets through aggressive airdrop farming, creating what Conflux co-founder Yuanjie calls a “prisoner’s dilemma.” Users move funds not to use apps, but to farm tokens — draining liquidity from Ethereum itself.
This mirrors Cosmos’ ATOM problem: hub tokens lose value capture as sovereign chains flourish. Similarly, ETH risks becoming a settlement layer stripped of economic relevance.
The Great Divide: Reform or Resist?
With faith waning, two ideological camps have emerged among the remaining believers:
The Pragmatists (The Right)
They argue Ethereum must evolve to survive — even if that means compromising ideals.
- Orange believes Ethereum must stop “playing dead” and embrace regulation.
- Yuanjie suggests the Ethereum Foundation needs a commercial arm — not just academics.
- Lin Feng goes further: “We need a Trump-like figure — someone ruthless enough to reform EF’s softness.”
Their message is clear: To thrive, Ethereum must negotiate with power.
The Idealists (The Left)
They see Ethereum’s core value in its resistance to authority.
- BlueFox Notes, a well-known analyst, says he supports Ethereum only if it stays decentralized, secure, and trustless.
- Investor Jacob holds despite losses: “SOL is corporate stock. ETH is civilization-level innovation.”
To them, Vitalik isn’t just a founder — he’s an internationalist warrior in a world of capitulation.
This split reflects a deeper tension in blockchain philosophy: efficiency vs. freedom, adoption vs. purity.
Can Ethereum Reclaim Its Glory?
On April 22 — amid institutional sell-offs by Galaxy Digital, Paradigm, and even an Ethereum Foundation-linked wallet — one counter-move stood out: F2Pool co-founder WangChun swapped 50 WBTC for 2,794 ETH (~$4.36M).
A small act. But symbolic.
It signals that belief still exists.
Big Orange remains steadfast. His wealth from the 2021 bull run has transformed his stake into something beyond finance — it’s identity.
IOSG Ventures’ founder Jocy urges patience: “Ethereum won’t die. It’s Web3’s most successful decentralized organization. View it through a 10-year lens.”
FAQ: Understanding Ethereum’s Crisis and Comeback Potential
Q: Why is ETH/BTC at multi-year lows?
A: Declining relative demand for ETH compared to BTC, reduced on-chain activity, and competition from faster chains like Solana have weakened sentiment.
Q: Is Ethereum losing value to Layer 2s?
A: Yes. While L2s improve scalability, they capture most MEV and fees, limiting value accrual to ETH stakers and the mainnet.
Q: Can Ethereum recover its narrative?
A: Only with major upgrades (e.g., full danksharding) or breakout applications that bring mass usage back to L1 or unified L2 experiences.
Q: Should I sell my ETH if I’m at a loss?
A: Emotional decisions often backfire. Consider your original thesis: If you still believe in decentralization and long-term adoption, holding may be rational.
Q: What would trigger an Ethereum revival?
A: Increased institutional adoption post-ETF approval (if applicable), breakthrough dApps exclusive to Ethereum, or successful scaling reducing fragmentation.
Q: Is the 'Ethereum Asylum' real?
A: Yes — though anonymized here, it represents real sentiment within long-term holder communities facing psychological strain during prolonged bear markets.
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Conclusion: A Dream on Life Support
The Ethereum Asylum is more than a meme-filled group chat. It’s a mirror reflecting the soul of a community torn between disillusionment and devotion.
Lin Feng sold his ETH — and with it, his dream. Others remain trapped by emotional and financial investment. Some want reform. Others demand purity.
But one truth endures: Ethereum created the playbook for Web3. Even in decline, its influence persists.
Whether it rises again depends not on price charts alone — but on whether it can reignite belief in its original mission: a decentralized future worth fighting for.
Until then, the asylum remains open — for those who’ve lost faith… and those still clinging to it.