It is clear that Ethereum has become too diffuse with its layers 2, especially against the skinny, mean “Eth Killer” Solana. But is this a sign that Ethereum will be a laggard in this cycle, or will it emerge as a top contender once the dust settles?
Ethereum has faced a storm of skepticism lately, with everyone from Bitcoin Maxis to Memecoin traders taking shots, while Solana rides a new wave of momentum. Here’s what you need to know about which will be best for this cycle.
The fight against Ethereum. Solana
Still the heavyweight champion in the field of smart contracts, Ethereum finds itself in troubled waters. Its value relative to Bitcoin has fallen to a level not seen more than three years ago, reigniting investor anxiety. The fault is that liquidity is flowing from Ethereum to other smart contract platforms like Solana.
“Ethereum remains the leading smart contract platform committed to true decentralization, with significant institutional adoption and development activity,” emphasized Eric Connor, one of Ethereum’s lead developers, as he defended the blockchain against his critics.
Ethereum finds itself in a bind, thanks to the emergence of layer 2 solutions and rival platforms that are draining its liquidity and users. This halted ETH’s momentum, driving its price below the $2,500 mark as Bitcoin progresses in its recovery. So is Ethereum screwed? Yes and no.
In this cycle, DO NOT expect Ethereum to outperform Bitcoin or any other trending altcoins like Solana, Sui, and Kaspa.
However, Vitalik Buterin and company have made a gamble with the proliferation of L2s that will take years to bear fruit; it will not be immediate.
Ethereum is in big trouble
Moving UNI off-chain is just the final nail in the coffin, all applications are instead migrating to competing L1s and L2s
By collapsing ETH revenue, UNI was ETH’s largest paying customer!
Now ETH is left behind, irrelevant and broken; Ethereum is cooked
… pic.twitter.com/AY55IShcoD
– Justin Bons (@Justin_Bons) October 14, 2024
… Ethereum is the backbone of what will eventually become a fully digital commerce infrastructure. I understand. It’s also the most boring take in crypto. It’s not going to the moon; ETFs are just slowing it down, and as far as solid layer ETFs go, they’re getting maybe average interest. It’s like mining iron while everyone else is mining gold or diamonds.
You keep thinking about everything that needs iron, and yet you will never be as excited as the fools who get up every morning thinking that maybe this will be the day that changes everything.
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The way forward for SOL and ETH
In contrast, Solana has blazed its own trail, climbing 17% this week alone. 99Bitcoin analysts highlight the appeal of Solana’s dynamic ecosystem and very low transaction fees. The coin frenzy on Solana is only adding fuel to the fire, stealing Ethereum’s thunder.
Solana’s journey is not without obstacles: recent sales from big players like Pump Fun, which sold 40,000 SOL this week, have put pressure on its price. Still, analysts are betting on Solana’s resilience, noting its ability to absorb new supply and keep traders hooked, pointing to a strong future.
In conclusion, the Tl;dr is that the FUD against Ethereum is justified.
But it is also a fundamental signal for all those who aspire to Ethereum. At 99Bitcoins, we sometimes find it helpful to counter trading sentiment, and a barrage of negativity can often be indicative of underlying signals.
As Ethereum and Solana battle for supremacy and innovation, those who hold the purse strings and code must remain vigilant as the scene evolves.
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