Author: 636Marx

Solana is seen by many former Ethereum supporters as the biggest challenger. In the past 24 hours, the SOL coin has had the highest increase among the top ten cryptocurrencies.

Solana's current trend aligns closely with Bitcoin, and the community generally believes that SOL will easily break through the historical high of $260 after Trump's victory. The support rate on Polymarket is 60.7%, while Harris stands at only 39.4%.

Ethereum has performed poorly this year, with today's ETH/BTC hitting a new low of 0.03773 BTC for 2024. This is a 38.3% drop from 0.06117 on January 12 and a 69.5% drop from the historical high of 0.1238. As the second-largest cryptocurrency by market capitalization and the largest blockchain platform, I have the following humble opinions, so I remain optimistic about Ethereum's long-term prospects.

Ethereum's Verge Upgrade: Democratizing Node Operation

Verge is one of the key upgrades that Ethereum is about to undergo, and it is a core part of its long-term strategy, significantly impacting decentralization. Ethereum co-founder Vitalik describes it as a step towards "Ethereum 2.0." Verge aims to drastically reduce the computational resources required to run nodes.

Blockchain nodes store a complete copy of the blockchain and assist in transaction verification. Traditionally, running an Ethereum node requires substantial hardware resources. However, the Verge upgrade aims to significantly lower these requirements, making it possible to run nodes on lightweight devices such as smartphones and smartwatches.

The Importance of This Upgrade

This upgrade could fundamentally change the way people interact with Ethereum. By reducing the hardware and energy demands of node operation, Ethereum will become more decentralized. Decentralization is crucial for blockchain security and resistance to censorship, as a more distributed network is inherently more resilient to attacks and manipulation.

Imagine a world where millions of people run Ethereum nodes on their phones; this would not only enhance network security but also integrate Ethereum more deeply into daily life. Running nodes on mobile devices can facilitate user participation in network governance and transaction verification, all of which can be done on personal devices.

This advancement brings Ethereum closer to its vision of becoming a "world computer," supporting decentralized applications (dApps) on a truly global scale.

Vietnam's Blockchain Initiative: 20 New Brands and a National Network

As Ethereum makes technological progress, countries around the world are embracing blockchain technology. Vietnam has become a pioneer, recently announcing plans to launch a national blockchain network and nurture 20 new blockchain-based brands.

This initiative showcases Vietnam's strategic commitment to blockchain innovation. The government is collaborating with private entities to develop a network that supports diverse applications across sectors such as finance, logistics, education, and healthcare.

Vietnam's Blockchain Strategy

Vietnam's blockchain ambitions go beyond merely adopting new technologies—they aim to position the country as a leader in the digital economy. By nurturing domestic blockchain projects and establishing a national network, Vietnam seeks to become a hub for blockchain innovation in Asia.

This focus is particularly relevant as blockchain technology increasingly permeates various global industries. Vietnam's approach reflects a broader trend of countries seeking to leverage decentralized systems for economic and governance purposes.

Moreover, given the global interest in blockchain technology, Vietnam's national blockchain network could attract significant foreign investment. With the right infrastructure, Vietnam is poised to become a key player in the global blockchain ecosystem, following in the footsteps of countries like Estonia and Switzerland.

Ethereum's Market Performance Relative to Bitcoin

Despite Ethereum's positive developments in technology and adoption, its value has been declining relative to Bitcoin in recent months. YouTube influencer Altcoin Daily, with millions of followers, posted a message today on social media expressing continued support for Ethereum, which garnered numerous comments from fans. Some fans misinterpreted the video, believing that the girl was attacked for supporting Ethereum.

Factors Behind Ethereum's Market Position

The reasons for Ethereum's decline relative to Bitcoin are complex. Bitcoin is often viewed as the "digital gold" of the cryptocurrency world and is considered more resilient to regulatory and technological risks than other cryptocurrencies. Meanwhile, Ethereum continues to evolve its platform and implement significant upgrades, such as Verge, which brings some uncertainty for investors.

Bitcoin's dominance is partly attributed to its simpler use case as a decentralized currency. Ethereum's broader ecosystem of dApps, DeFi (decentralized finance), and NFTs (non-fungible tokens) means it faces competition not only from Bitcoin but also from other blockchains like Solana, Avalanche, and Binance Smart Chain.

Current market dynamics also play a significant role. In the context of rising interest rates and global economic uncertainty, many institutional investors are seeking safer assets. Due to its limited supply and established market position, Bitcoin has become the preferred choice.

Arguments for Ethereum's Long-Term Potential

Despite Ethereum's recent price decline relative to Bitcoin, its long-term outlook remains positive. Several factors support this view:

1. Ethereum's Network Effect

Ethereum has the most developed ecosystem of any blockchain, hosting thousands of dApps that serve millions of users and process billions of dollars in transactions daily. This network effect is difficult to replicate. While other blockchains like Solana and Avalanche are making progress, none can match Ethereum's level of adoption.

2. Leadership in DeFi and NFTs

Ethereum remains the leader in DeFi and NFTs. Despite recent market volatility, the potential demand for decentralized financial products and digital collectibles remains strong. Ethereum's infrastructure continues to support these industries, and as these markets mature, Ethereum's value may appreciate.

3. The Merge and Future Upgrades

Ethereum recently completed "The Merge," transitioning from proof-of-work to proof-of-stake consensus. This shift significantly reduces Ethereum's energy consumption and paves the way for future upgrades, including sharding and Verge. These improvements will enhance Ethereum's scalability, security, and efficiency, driving future adoption and potentially increasing its value.

In particular, the Verge upgrade highlights Ethereum's commitment to decentralization and accessibility. By enabling mobile devices to run nodes, Ethereum will expand its reach, increase participation, and further strengthen network security.

4. Institutional Adoption

Ethereum is gaining favor among institutional investors, particularly in decentralized finance and enterprise solutions. Large companies like JPMorgan and Visa, as well as some governments, are exploring Ethereum-based projects. As institutional adoption grows, Ethereum's utility and value may significantly increase.

5. Layer 2 Scaling Solutions

While Ethereum has faced criticism for high transaction fees and slow processing times, layer 2 scaling solutions like Optimism and Arbitrum are addressing these issues. These solutions make interactions with Ethereum more cost-effective and efficient, making the network accessible to a broader audience. As layer 2 technologies mature, Ethereum will be able to accommodate more users and transactions, further enhancing its long-term prospects.

Conclusion: The Author's Take

The ongoing decline in Ethereum's price reflects broader dynamics in the cryptocurrency market rather than inherent weaknesses. Ethereum continues to innovate, and upgrades like Verge expand its capabilities and accessibility. As a leading blockchain platform, Ethereum is well-positioned to capitalize on these developments.

Despite short-term market fluctuations, Ethereum's long-term outlook remains optimistic. Its technological advancements, established network, and increasing institutional adoption will drive its future value.

In the future, Ethereum is sure to emerge as a key player.