Ethereum is a popular blockchain. This week, its founder laid out a map for its future. In this article, we discuss what to expect from Ethereum.
Vitalik Buterin has been quiet lately. In fact, his main activity has been offloading his own cryptocurrency, which has led to tension in the market. Yet this week, he returned with a definitive plan for the future of Ethereum. In this article, we discuss the future vision for the blockchain.
What Is the Surge?
The past few months have not looked good for Ethereum. Its ETFs have seen massive outflows, its founders have been moving huge amounts of ETH around, and it seems that other blockchains have arrived to take their place. Yet all of that seems to have been forgotten on the last day, as founder Vitalik Buterin shared his next step in the evolution of Ethereum.
The idea is to transform the blockchain so it is able to process over 100,000 transactions per second. Ethereum will remain decentralized and secure, but it will be using layer 2 solutions to assist it. The Surge will be the next chapter in the Dencun upgrade. This announcement has seen the Ethereum price rise to $2600 against USD and it could go even further.
Ethereum uses a principle known as sharding. This allows nodes to handle small fractions of transactions. In contrast, layer two solutions take their computing and do it off the blockchain, speeding up the process. This is known as a rollup. Ethereum transactions will now shift to this model and create a hybrid approach.
Network Integrity
This does not leave the Ethereum blockchain redundant. The main chain will be used as a secure base layer. Together, they will provide network integrity with lower fees and faster speeds. However, he has not given a date for when this will be in place. He has expressed a desire to do it in stages, keeping its core principles along with scalability.
Buterin likened it to how other systems in society work. “This is a pattern that recurs everywhere in society: the court system is not there to be ultra-fast and efficient; it’s there to protect contracts and property rights, and it’s up to entrepreneurs to build on top of that sturdy base layer,” he explained.
He also highlights the easier solution, which would be to increase the gas limit of Ethereum. However, this would require more hardware and fewer centralized vendors. He also added that Ethereum should feel like one ecosystem, not 34 different blockchains.
Ethereum Whales Accumulating Money
This week, it is Bitcoin that has had a huge push and pulled away from altcoin competitors. Traditionally, when Bitcoin breaks away from the pack it does so at the expense of another cryptocurrency. This has been seen this week.
However, investors should not turn their back on Ethereum for several reasons. Firstly, Bitcoin is heading towards a psychological high. This can cause a lack of confidence, and panic selling can reduce its value as it nears the threshold. As it does, altcoins begin to take over and rise in value. The main one of these is Ethereum.
Added to this are several whales that have been accumulating Ethereum over the past month. According to IntoTheBLock, in three days last month, several large Ethereum holders added to their totals. This amounted to 1.7 million ETH with 175,000 ETH purchased in the last day alone.
This has been reflected in the price, with a rise of 5.9% over the last week. This means it has finally hit above the $2,600 threshold. Its trading volume is also up on the week before.
Can Ethereum Break the $2700 Level?
After losses in the first half of the month, it seems that this news has pushed ETH back up to $2600. However, the next step will be to see if it manages to break the $2700 barrier. Inflows have been recorded consistently since the 9th of October, though this has lessened in the last few days.
There are two options now available. The first is that a price rejection occurs. However, this should generally have happened as it hit around $2.5k and it seems to be past this point. A second is that the bull run continues. Ethereum only needs an extra 8%, not unreasonable, and it could hit $2.9K. Depending on US Economic policies between now and the end of the year, that could increase further to over 3k.
However, one other overlooked factor that could be driving up interest is that Ethereum-based coins have recently surged back into fashion. These can be used as collectibles or in gaming. This shows that the blockchain is in use.
One coin that has been on an upward trend is Pepe (PEPE). This made an impressive leap of 11% in the last week alone. A rising price of 37% has been recorded over the last month. Yet it is not the only Ethereum-based meme coin that can do so. NEIRO has also moved up by 28%.
After a long period in the dark, it seems like a plan is in place to bring the Ethereum network up to the level of its competitors. This has been reflected in the movement from major whales and positive price increases. With meme coins on the chain in use, this could be reflected in its price. There may be life in the old dog yet.
