We need more social awareness and a deep understanding of the cryptocurrency industry to appreciate the value that Ethereum provides. This article is sourced from crypto KOL Ignas and compiled and translated by PANews.
(Background:
Vitalik Buterin acknowledges that Ethereum is “underperforming” and responds to the community: considering reducing Layer 1 block intervals.
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(Background supplement:
Nine consecutive wins! Ethereum whale quickly clears $13 million worth of ETH before Fed rate cut.
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Are there still ETH bulls in the market? The market sentiment for ETH has turned extremely bearish for the fourth time this year. With the decline in ETH revenue and burn volume, people are beginning to realize that the narrative of “ultrasound money” has disappeared.
L2 does not provide additional benefits.
While L1 activity needs to increase, it is outsourced to L2s, which does not seem to have clear benefits for ETH in the community’s eyes.
Crypto KOL DCinvestor hopes to redefine ETH as programmable money, which is the only important narrative.
This narrative advocates for ETH as the original collateral, where revenue and burn indicators are not as important.
Chainlink community liaison Zach Rynes argues that stablecoins have proven to be a more efficient and widely adopted programmable money than ETH.
With more L2 solutions using their native tokens as Gas, the narrative of ETH as “digital oil” is gradually weakening. Even builders are concerned.
Ambient founder Doug Colkitt humorously and accurately compares Ethereum’s Rollup-centric plans to a pilot in mid-flight, realizing that the runway is too short but insisting that everything will be fine, despite all evidence suggesting otherwise.
Is it all over?
Crypto KOL MilliΞ believes that evaluating the value of ETH requires social awareness, understanding of the industry’s mission, emphasis on network effects, skepticism towards fiat currency, and confidence in innovative internet-native societies.
ETH is different from anything that has come before it, making it difficult to fit into traditional narratives like “digital oil” or “tech stocks.” The value of ETH lies in its potential to establish a native sovereign economy on the internet, without intermediaries or legacy systems. It requires visionary thinking, understanding of network effects, and recognition of unrealized possibilities.
Ethereum will define its own future beyond the current framework. Some may say that it is difficult for the baby boomer generation and institutions to accept this.
Crypto KOL mikeneuder provides a visionary example. He believes that Ethereum will offer a decentralized, self-custodial, permissionless system that allows value transfer globally without being seized or censored.
This is the core of his long-term value proposition. Decentralization is not just an added bonus, it is crucial. In a world where governments and corporations can enforce centralization, Ethereum’s neutral and censorship-resistant design makes it a unique digital property system. While Bitcoin has censorship resistance, with the decrease in block rewards, it will rely on transaction fees to incentivize miners, which may not guarantee its long-term security.
This is what Ethereum Foundation researchers like Justin Ðrake have mentioned in the past.
Furthermore, unlike the static development of Bitcoin, which has a roadmap for Ethereum’s scalable solution, the transition based on Rollup can fundamentally change the incentive structure and directly impact the monetization of ETH, according to Adam Cochran, a partner at venture capital firm Cinneamhain Ventures.
This shift could increase the long-term demand for ETH by 100 times.
With the progress of the PoS transition and ETH burn, everything seems to be going smoothly. However, due to the difficulty in the price recovery of ETH, the narrative of Ethereum is currently uncertain. Personally, for the author (Ignas), it is interesting to see the community discussing the redefinition of the Ethereum narrative.
Ignas agrees with crypto KOL MilliΞ’s explanation that we need more social awareness and a deep understanding of the industry’s mission to appreciate the value that Ethereum provides. However, when greed and speculation cloud our thoughts, the entire industry tends to deviate from its mission. It is only when things become more difficult that we return to our original intentions.
Furthermore, it is encouraging to see more active discussions between the Ethereum Foundation and L2 builders, and even Vitalik’s increased participation in community discussions. All of this clearly indicates that people are increasingly eager to get back on track.
But as Doug Colkitt, the founder of Ambient, asks, “Are you sure the runway is long enough to accommodate this plane?”
In conclusion, Ignas remains bullish on Ethereum (biased if you will).
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