Recently, Ethereum's trend is weaker than BTC, sol. Grayscale's selling pressure is a small matter, and the conversion to POS is a big deal. The following is my understanding of Ethereum
In order to expand capacity and reduce handling fees, ETH switched from POW to POS. After switching to POS, miners no longer need to buy constantly iterating mining machines, rent sites, reduce temperature and noise, maintain 24 hours a day, or pay high electricity and bandwidth costs. They can print money by staking 32 ETH. This seems to be a great thing! It is really beneficial to the community of human destiny.
2. The ultimate goal of ETH upgrade is to become a broad-spectrum application platform for blockchain. Since it is a platform that embraces all, it must be low-cost and tolerant. It cannot cost hundreds of dollars to deploy a contract, hundreds of dollars to call it, and dozens of dollars to transfer an account.
3. If you want to reduce the gas fee of eth applications, there are only two ways: 1. Reduce gaslimit, 2. Reduce gasprice; the current eth framework limits the ability to reduce gaslimit (maybe it can be achieved in future upgrades), so you can only reduce gasprice, that is, reduce the price of eth. It is estimated that it needs to be reduced to less than $100 to barely run applications on a large scale;
4. In addition, the price should indeed be lowered after the switch to POS, because the rigid cost of ETH is gone... However! The price of ETH has dropped, and the so-called miners who have pledged 32 ETH will laugh in their dreams and wake up to earn money out of thin air. This will lead to continuous withdrawal of pledges, resulting in insufficient decentralization and even failure to produce blocks;
5. The long-awaited second-layer network is far from the expected value. The TPS is even worse than the main network eth. In addition, there are many unknown vulnerabilities in both OP mode and ZK mode. Even for DeFi projects deployed on the main network eth, theft incidents have become commonplace, almost every month. Therefore, the theft vulnerabilities of the second-layer network will increase exponentially in the future.
6. If ETH insists on not lowering its price because of the so-called consensus, then ETH will be replaced by new public chains with "latecomer advantages", such as Sui, Sol, etc.
The biggest contribution of eth to the cryptocurrency world is that it makes "issuing coins" (to be exact, issuing tokens) almost barrier-free, so don't hold too high hopes on Ethereum. When you see this, remember to double-click to like + follow to share more later. If you have bought Ethereum series currencies, you can leave a comment in the comment area and I will give you a reference.
