Despite all the criticisms and challenges, Ethereum remains an important force in the crypto industry with its strong technological innovation capabilities and broad community support. In the long run, external market fluctuations may have short-term impacts, but internal technological development remains robust.
Author: Mu Mu, Vernacular Blockchain. Ported by: Bosen Quantitative Consultant Xiao Sun (bosen0722)
Controversy over Layer2 development path
As the Ethereum ecosystem expands, Layer2 technology has become a focus. Critics believe that the rapid development of Layer2 has led to a decline in the transaction volume and liquidity of the main chain, and they worry that this will weaken the long-term value of Ethereum. However, as an important solution for Ethereum's scalability, Layer2 essentially enables more developers and users to operate in the ecosystem by reducing transaction costs and increasing speed. In the future, as more Layer2 applications mature, the interaction between the main chain and Layer2 will become closer, and the overall ecosystem will become stronger.
The current situation and future of inflation problem
After Ethereum switched to POS, critics pointed out that the inflation rate increased, affecting the scarcity and value of ETH. But the reality is that Ethereum's inflation rate is still lower than Bitcoin, especially during market downturns, when reduced on-chain activity leads to higher inflation. As the market recovers and on-chain activity increases, the demand for ETH will also rise, and the inflation problem is expected to be alleviated.
The operation of POS for nearly two years has proven its security and decentralization feasibility, becoming a more environmentally friendly and sustainable consensus mechanism.
Foundation shipment controversy
The Ethereum Foundation sold a large amount of ETH at the peak of the price, which aroused market doubts about its "peak escape" behavior. In response, the Foundation said that this is a normal fund management behavior and does not mean that they lack confidence in the future of Ethereum. In fact, the Foundation continues to invest in technology research and development and ecological construction, demonstrating their confidence in long-term development.
Spot ETFs have limited usefulness
The launch of Bitcoin spot ETFs has brought market attention, but Ethereum spot ETFs have not produced the same effect. Some people believe that this is because the Ethereum ecosystem is not yet fully mature, but in the long run, as the popularity of Ethereum applications increases, the influence of ETFs may gradually emerge.
Is innovation stagnating?
Despite constant criticism, Ethereum has always been at the forefront of the industry in terms of technological innovation. The development of technologies such as Layer2 and ZK-Rollups is an important innovation in the Ethereum ecosystem. As these technologies are further implemented in the future, Ethereum's technological competitiveness will continue to have an advantage.
Does Vitalik dominate everything?
Some people criticize Ethereum founder Vitalik Buterin for having too much influence in the community, which leads to over-centralization of Ethereum decision-making. However, the governance mechanism of the Ethereum community focuses on decentralization, and important technical decisions are often made through extensive community discussions and voting. Although Vitalik has a say, he is not the only one who has the final say.
What should ordinary people do?
[No investment and financial advice, the cryptocurrency world is risky, so be careful when investing! ]
If you don’t have much time to research, don’t want to be distracted and contribute real money to others, but want to make stable profits in the crypto industry, you can try quantitative strategies. For example, through CCR intelligent spot robots and CCG contract quantitative robots, you can reasonably control positions, use big data to calculate the timing of transaction entry and profit-taking, and liberate manpower!
