#ETH🔥🔥🔥🔥🔥🔥
Has the prolonged slump of Ethereum reached the best buying point?
The development of blockchain has been striving to achieve decentralization while reducing costs and improving efficiency. The thriving development of the Layer2 ecosystem has significantly enhanced Ethereum's processing capacity and efficiency on the basis of maintaining security and decentralization, promoting the diversification of applications, and better meeting user needs.
Although some of Ethereum's business has moved to Layer2, most Layer2 still relies on Layer1 for data. Layer2 transactions are becoming increasingly active, and the data transmitted back to Layer1 is increasing, which has led to a rise in Ethereum's GAS consumption.
The growth of Layer2 networks has also greatly increased the demand for Layer1 bridging and staking. For example, when cross-chain, assets locked require Ethereum GAS, and ETH is also an important guarantee for cross-chain validation. Some bridging protocols also need to record transaction data on Ethereum, which also consumes GAS.
Some Layer2 solutions have used third-party data layers like Celestia to reduce costs, or changed GAS from ETH to governance tokens, but transactions ultimately still need to settle on the Ethereum mainnet. As long as asset and transaction security is involved, Ethereum cannot be bypassed.
In the Layer2 era, Ethereum acts like a decentralized “central clearing bank,” ensuring the security and effectiveness of transactions. The larger the Layer2 ecosystem grows, the stronger the network effect of Ethereum becomes, and the demand for Ethereum collateral and GAS will also surge. With the current low coin prices, the main issue is insufficient demand; once new applications break through, the problem will be resolved.
Although high-performance public chains like Solana and SUI have taken some market share from ETH, Ethereum remains the leader in the POS field. Firstly, because the Layer2 ecosystem is developed, Ethereum can scale while maintaining decentralization, which most other public chains cannot achieve, and their security is far inferior to that of Ethereum; secondly, in terms of ecological development, Ethereum is still far ahead.
For assets with strong cyclicality, counter-cyclical buying and selling is a good strategy. That is, buy when Ethereum's price-to-earnings ratio and price-to-sales ratio are at their highest, and sell when at their lowest. Now that Ethereum's network activity is so sluggish, it might just be a good time to buy.
The market has experienced a sharp decline, and next I will prepare some coins suitable for bottom fishing as a recovery plan. Feeling lost and helpless? Follow me! Choice is greater than effort.
