September 6, 2024
The market has been "falling" recently, especially ETH, which is known as the king of altcoins. Because it has both the stability of Bitcoin and the volatility of altcoins, it is widely accepted by the market. However, this year's performance is not as good as Bitcoin, and the decline is comparable to that of altcoins, which is disappointing. For this reason, the Ethereum Foundation team conducted the twelfth AMA on the reddit forum to respond to some issues of concern to the market. I will excerpt a few key points for you.
First of all, the foundation's expenses are about 100 million US dollars a year. According to the current ETH and fiat currency reserves, it can be sustained for 10 years. As for the price of Ethereum, the foundation will not intervene directly, but it is considered very important, because only when ETH becomes the de facto "Internet programmable currency" can Ethereum become the settlement layer of the "value Internet". As for the large-scale outbreak of L2, it is actually a good thing for Ethereum, because the application of these Rollups will promote the use and circulation of ETH, and the key to the price growth of ETH lies in the use and circulation of ETH. Ultimately, these L2 transactions will in turn affect the value of the main network.
Another key point is that Ethereum's various technical explorations are still proceeding in an orderly manner. Everyone knows that I am a loyal believer in Ethereum. In my opinion, these active developments are the guarantee for the future. The poor price performance of Ethereum this year is mainly due to the lack of new growth points in the DeFi industry, which cannot attract new funds and naturally lacks growth vitality. However, this does not deny the current achievements of Ethereum, including DeFi and L2. Both routes are correct.
In terms of market conditions, Ethereum has fallen a little bit, and the next big support is the previous low of $2,100. Do you remember the moment before Ethereum was about to break $4,000? In my opinion, today may not be the lowest price of Ethereum, but for the expectation of $10,000 in the future, it has reached a very suitable range for building positions. Of course, short-term declines may still be unavoidable, but I will still focus on how to build long-term chips, including cottages, and it is also a good time.
Thank you for your likes and attention.
