Is Ethereum really in decline? Is it difficult to replicate the glory of past years? Will a new round of paradigm innovation in the Crypto industry occur within the Ethereum ecosystem? This article will take you back to the origin of the Crypto industry—Bitcoin, to reflect on Ethereum and the entire industry, and to explore where the path to revitalizing the Crypto industry might lie?
Escaping the inertia of Ethereum First, no one can completely deny Ethereum! Ethereum has its value and pioneering significance, and smart contracts have indeed opened a new chapter for the entire crypto industry. At least before the birth of Ethereum, most projects in the crypto industry were just poor imitations of Bitcoin. They simply modified a few parameters of Bitcoin's code to create larger block Bitcoin, faster Bitcoin, or more private Bitcoin, etc. Essentially, they were just simple knockoffs of Bitcoin. The concept of altcoins basically encapsulates all Crypto projects before the birth of Ethereum. After the birth of Ethereum, the entire Crypto industry entered a wave of Ethereum knockoffs. Since 2015, countless so-called public chains have been born, such as larger block Ethereum, faster Ethereum, better-performing Ethereum (including Layer 2), etc. Moreover, the so-called ecosystems of each public chain are basically replicas of the Ethereum model, merely DeFi, GameFi, various L2s, modularity, etc. Now, retail investors have become desensitized by various cleverly named and diverse narrative concepts that have repeatedly harvested them, so they simply don’t believe anything anymore and only play the simplest and most straightforward memes. Although everyone knows they won't last long, at least they can enjoy a thrilling gamble!
Without innovation, without vitality, consensus is scattered, and zombies are rampant. The entire industry is filled with a sense of hopeless doom! Does the Crypto industry still have a future?
However, when you look back at Bitcoin, it alone continues to lead the way and frequently breaks new highs, seemingly unaffected by all of this! We can't help but wonder if the entire industry has been trapped in 'Ethereum inertia' for too long, to the point where we completely overlook Bitcoin! After all, Ethereum is inspired by Bitcoin and stems from the Bitcoin community. Ethereum is a form of interpretation of Bitcoin, but the entire industry has taken the Ethereum model as everything. If we want to find the problems with Ethereum, and if we want to rediscover new opportunities for paradigm innovation, we must return to Bitcoin, re-understand Bitcoin, and find the source of innovation in Bitcoin, just as it was at the beginning of Ethereum's birth! Let us temporarily escape the inertia of Ethereum and return to Bitcoin to think!
As we mentioned earlier, mechanical consensus directly affects social consensus. Ecology, applications, users, and market price are all manifestations of social consensus. The essence of the weakening of social consensus is the weakening of mechanical consensus. Why has the mechanical consensus of Ethereum weakened?
The PoS mechanism is a static fixed income model that lacks competition in computing power and energy, making it impossible to form redundant costs, thus mechanical consensus is weakened; the PoS mechanism lacks the ability to absorb 'negative entropy', failing to offset the internal entropy increase trend of the system by inputting 'computing power and energy'; the staking mechanism of PoS directly leads to the rich getting richer and class solidification. When class solidification occurs, it results in a community that lacks innovation and vitality, ultimately causing these abilities to overflow and create other competing products. This series of manifestations is the weakness of Ethereum's ecosystem, applications, users, and market price, among other social consensus indicators! Even if the market price can be forcibly raised to enhance social consensus, the principles of physics cannot be violated.
Ethereum is indeed showing signs of decline; this cycle is lagging further behind Bitcoin, which is the most real result! The next cycle will undoubtedly widen the gap even more! If Ethereum is like this, other public chains imitating Ethereum will inevitably also struggle to avoid decline! The Crypto industry has come to this point, truly reflecting that it has succeeded because of Ethereum and failed because of Ethereum! This may be something any industry experiences during its development process.
Ethereum has finally got an ETF, but everyone is rushing to BTC, not to mention the lurking Solana beside it.
Although we cannot see sufficient reasons for it to rise at present, in the future, we can expect the opening of staking for the second-largest cryptocurrency ETF. Although the yield is not high, it is still a significant temptation for large finance. Moreover, as the yield on old U.S. bonds continues to decline, staking the second-largest cryptocurrency will become increasingly appealing. Another thing is waiting for the funds to flow back into Ethereum, waiting for its rebound, but these are all future matters. The main upward trend is likely still in the later stages; however, for those currently holding it, waiting is a kind of torment. As for what to do now, we don’t need to be overly concerned about it; at least for now, there are still many better options than it.
The wind has really changed! The current crypto market is completely different from the past. No matter how strong a value coin is, if it lacks buying support, it will drop as soon as it is listed; in contrast, meme coins, regardless of whether they have a community or not, casually start with a market cap of 500 million or 1 billion. This is the true reflection of the new round of market conditions! Especially those leading projects with high global attention and clear narratives, it's not surprising for them to directly surge to a market cap of 1 billion or even higher.
These days, I am preparing for the launch of a divine order!!!
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Impermanence brings impermanence brings impermanence!!!
Important things are worth repeating three times!!!
