#AI财经 In the ever-changing field of cryptocurrency, Ethereum, which once occupied an important position, now seems to be facing a regrettable situation.
Since its birth, Ethereum has become a well-deserved "star" in the blockchain world with its groundbreaking features such as smart contracts. Many projects have been built on its ecosystem, attracting a large number of developers, investors and users, and establishing its solid position at the forefront of the cryptocurrency market value rankings. It can be said that it is enjoying unlimited glory.
However, with the passage of time, the current cryptocurrency market has undergone tremendous changes. Recently, a controversial but eye-catching phenomenon has emerged in the market, that is, Ethereum's performance is not even as good as a meme coin on Solana. As a rising star, Solana has gradually emerged in the market with its advantages such as high performance, while the meme coins on it are products with strong entertainment and community-driven nature, and often have greater price volatility and speculative attributes.
According to recent data, some popular meme coins on Solana have surpassed Ethereum in terms of price increase, market popularity, and community activity. The prices of some meme coins have doubled in a short period of time, attracting a large number of retail investors. Related topics have been continuously discussed and spread in major cryptocurrency communities, and the popularity remains high. In contrast, the price trend of Ethereum's native cryptocurrency ETH is relatively flat, and the development of some new projects in the ecosystem seems to have entered a bottleneck period. Whether in terms of the ability to attract new funds or the influence of manufacturing industry topics, it seems to be somewhat powerless.
However, with the passage of time, the current cryptocurrency market has undergone tremendous changes. Recently, a controversial but eye-catching phenomenon has emerged in the market, that is, Ethereum's performance is not even as good as a meme coin on Solana. As a rising star, Solana has gradually emerged in the market with its advantages such as high performance, while the meme coins on it are products with strong entertainment and community-driven nature, and often have greater price volatility and speculative attributes.
In any case, the fact that Ethereum is not even as good as Solana’s Meme coin has become a hot topic in the cryptocurrency field. It has also made the entire industry pay more attention to the future direction of Ethereum and the competitive situation among public chains. Whether Ethereum can achieve a reversal in the future remains to be seen.
Here are some reasons why Ethereum fell:
1. Technical limitations:
- Insufficient scalability: The Ethereum network has limited processing capacity and can only process 15-20 transactions per second (TPS) on average. With the rapid development of the cryptocurrency market and the increasing number of users and transactions, such a processing speed is difficult to meet the demand, resulting in network congestion and extended transaction confirmation time. For example, during some peak trading periods, users may need to wait for a long time to complete the transaction, which is a big problem for users who pursue efficient transactions.
- High Gas Fees: Due to network congestion and scalability issues, transaction fees (Gas fees) on Ethereum often soar. For ordinary users and developers, high transaction fees increase the cost of using the Ethereum network, making some small transactions or frequent interactions uneconomical. This not only limits user participation, but also makes some developers choose to look for other blockchain platforms with lower fees to build applications.
2. Increasing competitive pressure:
- The rise of emerging public chains: In recent years, many emerging blockchain projects have emerged, which have challenged Ethereum in terms of technical performance, scalability, transaction speed, etc. For example, Solana has attracted a large number of developers and users with its advantages of high throughput and low transaction fees. These emerging public chains provide more competitive solutions, causing some projects and funds to shift from Ethereum to other platforms.
- Competition in Layer2 solutions: Although Ethereum is also actively promoting Layer2 solutions to improve scalability and reduce costs, there is also fierce competition in the Layer2 field. Different Layer2 projects differ in technical architecture, security, compatibility, etc. Users and developers need to evaluate and make decisions among many options. This has dispersed the influence of the Ethereum ecosystem to a certain extent, and has also made Ethereum's development in the Layer2 field face challenges.
3. Ecosystem issues:
- Unreasonable incentive structure: The incentive structure on Ethereum is not attractive enough for developers and project owners. With the development of the blockchain industry, more and more public chain projects provide better incentive mechanisms to encourage developers to build applications on their platforms. In contrast, the tokens on Ethereum are decentralized, the ecosystem is crowded, and the returns developers get on Ethereum are relatively low, which leads some developers to choose to turn to other more profitable platforms.
- Foundation behavior raises concerns: Some of the actions of the Ethereum Foundation have also had a negative impact on the development of Ethereum. For example, the Foundation has repeatedly sold ETH to cash out, which shows that the Foundation does not seem to be optimistic about the long-term value of ETH, triggering a crisis of confidence in Ethereum in the market. In addition, the Foundation's decisions on the use of funds and project support have also been questioned by some community members, which has hindered the construction of the Ethereum ecosystem.
4. Questions from founders and core team:
- Founder's energy is scattered: Ethereum founder Vitalik Buterin (V God) is the soul of the project, and his energy in Ethereum technology development is believed to have decreased. His GitHub code submission records show that his contributions in recent months are relatively small, while his personal life is relatively active. This has caused people to worry about the technical development direction and future planning of Ethereum, and has also affected investors and developers' confidence in Ethereum.
- Brain drain from the core team: As competition in the blockchain industry intensifies, some members of the Ethereum core team may be poached by other projects or choose to start their own businesses. This weakens Ethereum’s technical research and development and ecosystem construction, affecting the speed and quality of the project.
5. Regulatory uncertainty:
The cryptocurrency industry has always faced regulatory uncertainty, and Ethereum is no exception. Different countries and regions have different regulatory policies on cryptocurrencies, and some strict regulatory measures may restrict the development of Ethereum. For example, some countries may prohibit or restrict cryptocurrency trading, mining and other activities, which has an impact on the market circulation and application scenarios of Ethereum. At the same time, regulatory uncertainty has also made investors and developers cautious about the future development of Ethereum.
6. Changes in market demand:
Initially, Ethereum's smart contract function attracted a large number of developers and projects, driving the development of its ecosystem. However, as the market develops, users' demands for blockchain applications are also changing. Some new application scenarios and demands may be more suitable for the technical characteristics of other blockchain platforms, and Ethereum is relatively slow in adapting to these changes, resulting in its lack of competitiveness in some emerging fields.
