October 17, 2024

Vitalik Buterin published an article discussing the future development of the Ethereum protocol. The core content mentioned that while maintaining the decentralization of L1, L2 should be more like an ecosystem rather than several different blockchains. Objectively speaking, this goal is not a short-term positive for Ethereum. At the beginning of development, each chain must develop independently, but "the rich first drive the rich later" is difficult in practice. Whether Ethereum can coordinate the coordinated development of various chains is a big problem.

Sometimes I wonder if Ethereum's development of so many L2s has really weakened ETH's application scenarios. The high cost of BTC transfers has not become an obstacle to market recognition, but rather a unique temperament. When Ethereum is congested, the gas is high, but it is called the "noble chain". Because the application scale is not large enough, the vigorous development of L2 has weakened L1 itself.

In fact, the large-scale popularization of blockchain, or commercial application, still has a long way to go (of course, from another perspective, it is still in a very early stage). One of the more obvious problems is hacker attacks. Due to the decentralized nature, once technical loopholes are exploited, the assets are basically gone. Yesterday, the lending protocol Radiant was attacked for the second time, and the current loss is as high as $58 million, which is a bit tragic.

In terms of market conditions, Bitcoin is now stuck in a high sideways trend. It seems that the main force of Bitcoin is also watching whether the altcoins will follow suit before considering whether to continue to pull the market. Generally speaking, a healthy bull market must be a general rise in the market. If Bitcoin is the only one to rise or even other coins are only falling, it means that the market is still a bear market. The past six months have also verified this result, and the price is continuing to fall. In addition, Bitcoin is only one step away from 70,000, and the market sentiment is not even fomo, which makes it a bit confusing. Let's wait a few days to see whether the altcoins will catch up and continue to hold the spot chips.

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