- Vitalik Buterin highlights Ethereum's recent advancements, emphasizing Layer-2 growth and improvements in zero-knowledge tooling.
- Ethereum's price volatility and declining gas fees raise concerns about the network's long-term health and investor losses.
- Galaxy reports post-Dencun upgrade improvements, with 2.23M blobs purchased, generating $9.3M and burning 89.45% of 2,692 ETH earned.
Vitalik Buterin,co-founder of Ethereum, has reacted to claims that the Ethereum ecosystem is deteriorating. Buterin highlighted the continuous efforts to enhance the overall resilience and performance of the blockchain by presenting a number of recent developments aimed at fortifying it.
Vitalik Buterin Praises Optimism's Role
Buterin praised Layer-2 network Optimism on the X platform for its contributions to the Ethereum ecosystem. He emphasized REMOTESTATICCALL, a feature developed by Optimism that improves asset transfers on the Ethereum network.
Additionally, Buterin also listed upcoming plans that should improve Ethereum's efficiency and interoperability, such as standardizing on-chain specific addresses, ERC-3668 light clients, and on-chain specific ENS. These actions may result in increased uptake and long-term viability of the Ethereum blockchain.
However, not all critics have been silenced, the optimism surrounding these developments has not. Krypto Ozzy, a trader on the cryptocurrency market noted that Ethereum has seen a drop in the current cycle despite these improvements.
According to Ozzy, a number of projects on the Ethereum mainnet and Layer-2 networks have filed for bankruptcy, causing investors to suffer large losses. He brought up the alarming statistic that almost 80% of investors have lost money in the Ethereum ecosystem, which raises questions about the network's viability.
Ethereum's Price Volatility Raises Concerns
Notably. Ethereum's price fluctuated a lot earlier in the month, falling to $2,000 and then rising 30% to $2,600. Given that the ETH gas fee has dropped to a five-year low, the market is concerned about this price movement.
Furthermore, the reduction in gas prices has also resulted in less ETH being burned, which has raised the supply of ETH overall. The long-term viability of the Ethereum ecosystem has come under increased scrutiny as a result of this circumstance.
In response, Buterin outlined a number of significant advancements that, in his opinion, fortify the Ethereum network. He emphasized the rise of Layer-2 platforms such as Arbitrum and Optimism and mentioned that L2 transaction fees have decreased to less than $0.01.
Additionally, the L2 wallet user experience has improved, removing the requirement for network switching by hand. Ethereum is now easier to use and more accessible thanks to these updates, which may draw more users to the network.
Advancements in Ethereum's Zero-Knowledge Tooling
Furthermore, Buterin also highlighted the advancements in zero-knowledge (ZK) tooling, which have made app developers' lives easier. In the long run, the creation of STARKs is also laying the groundwork for a decentralized and safer Ethereum. To tackle governance concerns in the Ethereum ecosystem, Buterin has put forth the idea of Plurality, which seeks to improve decision-making procedures and guarantee more fair results for all parties involved.
Moreover, Buterin's optimism is reinforced by a recent report from Galaxy that shows how the Dencun upgrade has improved Ethereum's ecosystem. More than 2.23 million blobs have been bought since the upgrade, bringing in $9.3 million in revenue. Furthermore, the network's sustainability has been enhanced by the burning of 89.45% of the 2,692 ETH earned.
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