jakiro
Author: Climber, Bitchain Vision Realm
In the near future, there are more and more topics and controversy around Ethereum. Not only does Vitalik himself need to explain the point of view, even the Ethereum Foundation will issue an announcement to calm down the community.
In this round of bull market cycle, Ethereum’s performance can be described as mediocre.The passing of Ethereum spot ETF in the United States has not allowed ETH to explode as expected by investors, but instead goes lower and lower in currency prices.This is inevitable that Ethereum, which has the reputation of the “King of Wanlin”, has gradually lost the respect of investors and communities, and then questioned all aspects of Ethereum.
Continuous controversy, Ethereum urgently needs to reshape the authority
Recently, community members have issued questions about Vitalik’s speeches, Ethereum Foundation, and even the Ethereum ecosystem, and the latter has also responded and refuted.
On August 25, Kol@0xstrobe questioned Vitalik, and publicly accused him of poor communication on the DEFI topic.The original content is:
“Vitalik, I think one of the reasons for people’s views on Defi’s views of Defi is poor communication -in your opinion,” DEFI “seems to mean a mining boom in 2021.
But for many others, “DEFI” means CDP such as aave and other Money Market, RAI (you also mentioned!), Synthetics, etc. to deposit money and borrow money.These are healthy decentralized financial applications -benefits come from borrowers, trading fees, etc.
Many “Ponzi Economics” that integrate into the DEFI ecology can only bring some indicators temporarily, but this is not the whole of DEFI.”
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Vitalik replied to this: The benefits you said came from borrowers, trading fees, etc. This is what I worry about.The value of cryptocurrencies is that you can earn benefits with them, and these benefits are paid by those who trades cryptocurrencies.
The answer is clear. For example, those who obtained 8% of the interest rates with the US dollar are paying for 8% annual interest rates to make multiple ETHs with 2 times leverage, but this means that the DEFI market exists in the downstream of the ETH market.Then although DEFI may be great, it is fundamentally restricted, and it cannot be the explosive innovation that pushes the encryption technology to another 10-100 times.
However, Vitalik’s reply has attracted more questions and refutes. For example, Electric Capital partners say Vitalik’s words are suitable for all finance.KOL @PAPERIMPERIUM indicates that Vitalik’s speech has misunderstandings about human economic history.The CEO of AlphaVerse Capital said the view of Vitalik cannot be established.
Immediately afterwards, the Ethereum Foundation’s transfer of 35,000 ETHs caused community doubts. The main point is that the agency’s annual expenditure report was not transparent.
The Ethglobal member Josh Stark said that the Ethereum Foundation is currently writing a latest expenditure report that will cover the expenditure of 2022 and 2023 and will be released before the DevCon SEA conference (November).At the same time, he also revealed the expenses of expenditure information in this report, including internal and external expenditures, such as:
“L1 R & AMP; D” includes funding for external customer teams, as well as internal EF researchers.In the past two years, internal expenditure accounts for about 38%, and external expenditures account for about 62%.
Internal expenditures include EF teams, such as:
-Geth;
-Puramental and Exploration (PSE);
-Solidity;
-Cipology research;
-Steading incentive group;
-DEVCON et al.
All these teams work publicly and share their activity information on their websites, github and social channels.
External expenditure means appropriation.In the past 4 years, we have been regularly published a report on EF appropriation activities on blog.ethereum.org. In the charts I shared above, the biggest new category is “new institutions”.One key goal of EF is to help build a new organization that can strengthen and support the Ethereum ecosystem for a long time.This category includes allocating funds provided to the following organization:
-Nomic Foundation;
-On decentralization research center (@THedrc_);
-L2Beat (@L2Beat);
-0xparc Foundation (@0xparc);
-And other organizations related to Ethereum and adjacent organizations
In addition to questioning Vitalik and Ethereum Foundation, members of the community issued questions about the construction of Ethereum.
Ethena Labs risk director@Macromate8 said that since 2021, almost no newcomers have entered the ETH ecosystem.But on the other hand, SOL is full of young developers who are constantly developing.
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In this regard, Josh Stark quoted the data in the Electric Capital Developer Report.Vitalik also replied that I like this chart to underestimate the success of Ethereum by listed L2 as a separate class, but even if there is such an obstacle, Ethereum still looks great.
In addition, questions such as Vitalik and most core developers will not regard ETH as value storage or meaningful programmable currency, and Vitalik also replies that if he does not believe that ETH is SOV, he will not make net assetsAbout 90% of them are in it.
Can Ethereum still explode?
For the above -mentioned topic disputes and the official response of Vitalik and Ethereum, many institutions and celebrities have also given their own opinions and predictions on the prospects of Ethereum.
The founder of Cyber Capital said that Ethereum is declining, and L2 is dancing on its “grave.”He pointed out that since the implementation of the EIP-4844 (Proto-Danksharding), Ethereum’s handling fee income has decreased significantly and cannot keep up with the inflation rate.At the same time, the L2 network’s usage and fees revenue reached a new high, and lobbying maintains the low capacity of Ethereum.Bons believes that this constitutes a “parasitic relationship”.
In addition, the L2 network is actually stealing users and fees of Ethereum, attracting users by disguising “the same as Ethereum”.Bons predicts that the L2 network will eventually migrate or become an independent L1 network, and Ethereum will gradually decline.He criticized Ethereum’s leadership for “betraying” his own interests for the L2 network and believed that this exposed the systemic problems in governance.
He warned that if Ethereum expands L1 in the future, it may lead to the collapse of the tokens and equity prices of all L2 networks, so the L2 network has motivation to prevent Ethereum from expanding.
Morgan Chase gave the reason why Ethereum performed well in the research report: Since the launch of last month, the Ethereum spot trading fund has generally appeared on a net outflow.More successful.The net outflow of Ethereum Fund was about 500 million US dollars, while the net inflow of Bitcoin ETF exceeded $ 5 billion.
The bank also stated that the weak data of Ethereum ETF was unexpected to some extent, and pointed out that Bitcoin’s “first -mover advantage”, lack of pledge and lower liquidity means the attractiveness of institutional investors to institutional investorsSmall.
ZHU SU believes that the problem of the Ethereum Foundation is not to sell the value tokens prematurely, but to provide a coherent roadmap and effective leadership.
However, there is still an optimistic point of Ethereum.
CF Benchmarks CEO believes that the spot ETF demand for Ethereum in the next few months may continue to grow. It is expected that more wealth management companies will provide customers with such products.
He also said: “Once wealth managers and financial advisors have completed the education process of Ethereum, their effectiveness, and why they should put it with Bitcoin ETF, the funds flowing into Ethereum ETF will continue to rise, the education process will continueIt will allow investors to understand the Ethereum economy and emphasize the main difference between it and Bitcoin, so as to fully illustrate that the distribution driver is different, both are balanced investment portfolios. “
Arkham listed previous data in the situation where Ethereum Foundation recently sold ETH in the near future.That is, in 2020, the foundation sold 100,000 ETH, and ETH rose 6 times afterwards.Arkham: Ethereum Foundation sold 100,000 ETH in 2020, and then ETH rose 6 times
The founder of 1confirmation believes that Ethereum market value may exceed Bitcoin in the next five years.At present, the market value of Bitcoin is 4 times that of Ethereum, and both will continue to grow, but Ethereum will eventually exceed Bitcoin.
He explained that Bitcoin has a clear narrative (digital gold), and the institution has now accepted the narrative.Ethereum has been the most influential blockchain in the encryption field in the past five years, but (outside the circle) people know little about Ethereum.Ethereum is scarce, generates income, and has practical cases.Because its market value is now significantly smaller than Bitcoin, Wall Street can have more.Wall Street is expected to continue to buy and promote Ethereum to the world in the next few years.
STENO Research high -level cryptocurrency analyst Mads Eberhardt gave the predicament of Ethereum. He believes that interest rates are the most critical factor affecting DEFI’s attractiveness, because it determines whether investors are more inclined to be more inclined to in the decentralized financial marketFind a higher risk opportunity.
Conclusion
As a representative of blockchain technology, Ethereum has been given unlimited expectations, and more and more L2 generated around it.However, in this round of encryption market cycles, Ethereum and its ecosystem seem to turn off the fire, and there are no bright spots. It is no wonder that it has continued to be criticized by the community.
But as far as Vitalik and Ethereum officials questioned the community, they were sincere and timely.Ethereum has also experienced a greater crisis of trust, so for the king of thousands of chains, you may wish to continue more patience.
