In the race to create faster, cheaper and more scalable blockchains, all major altcoin ecosystems can be traced back to Ethereum. What started as a simple programmer blockchain has become the foundational layer of liquidity, infrastructure, and innovation for the broader crypto economy.
Two leading chains that chose integration over isolation
A compelling new argument has emerged that redefines the future of Layer 1 (L1) blockchains, particularly those compatible with the Ethereum Virtual Machine (EVM). According to According to Ethereum Foundation ecosystem manager James_gaps, Celo and Ronin have proven why every altcoin’s L1 could eventually become an ETH L1.
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Celo shut down 110 validators and reduced security costs by 99.8%, from $6.9 million per year to just $13,200. Meanwhile, Ronin, another major gaming-focused L1, shelled out $35. million in staking rewards since 2023 to maintain its L1. Currently, they are redirecting that capital to developers who are actually generating revenue.
Despite This change, they remain dynamic and process 350,000 daily active addresses across 1,000 live games, with transaction activity even surpassing Axie Infinity’s era peak of 2.8 million users in 2022. With the change imminent Fusaka Upgradethe capacity of blobs is increased eightfold, further improving their scalability.
However, James_gaps explained that the founder by Ronin said it best, and in all EVMs, L1s are future L2s. When you can outsource security to ETH for pennies on the dollar instead of millions, while retaining your user base and preserving your sovereignty, the economic rationale for becoming an L2 becomes undeniable.
Building the foundation for the next higher step
Ethereum demonstrates strength in blockchain performance and pricing. Analyst Luca note as ETH price continued to consolidate around the green-marked high period support range, which previously acted as strong resistance throughout 2024, capping several local highs. The move from resistance to support now aligns with the bull market’s weekly support band, an area that has served as reliable support. support over the last few months.
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Luca believes that as long as ETH maintains above these levels, the medium-term outlook remains optimistic. In the coming days, the key test will become the resistance range marked in purple on lower timeframes, which aligns with the gold pocket between the Fibonacci points of interest (POI) of 0.2 and 0.618. A decisive break above this zone would confirm the bullish continuation.
Additionally, if price fails to hold the weekly bull market support band near $3,790 and closes decisively below daily, the expert is willing to hedge a portion of my spot holdings to mitigate short-term downside risk. Until this breakout occurs, the medium-term structure will remain bullish. Although the current consolidation appears to be a healthy base before the next rise.
Featured image from Getty Images, chart from Tradingview.com
