The debate regarding the feasibility of utilizing Ethereum to be the crypto-verse Army is regaining attention as the DeFi (decentralized finance), NFTs, and gaming are rushing in popularity. However, the attitude thereof is not much optimistic regarding the present state of matters. The effect of the unnecessary fees, slow updating, and long times for confirmation are disturbing the techies, large investors, as well as retail users.
Ethereum developers require to concentrate on L1
Experiencing no complications in delivering a suitable consumer experience, the developers of Ethereum are starting to move toward the competitor blockchains that have taken benefit out of this application migration to grow their access range and expand their market capitalization. Binance Smart chain, Solana, and other such blockchains have witnessed a comprehensive upsurge in 2021, making themselves stronger and more efficient alternatives in the place of Ethereum as well as the upgraded Proof of Stake thereof that has not been implemented yet. The Ethereum’s utilization on a vast scale is becoming less worthwhile as time passes.
Nicholas Merten, the owner of DataDash (a YouTube channel), posted on Twitter that the arguments favoring Ethereum may no longer hold up with time. He considers that ultimately, L2s (the original blockchain-based most prominent scalability solutions) are unworkable and provide fewer adoption incentives. For instance, he asserted that investors would instead spend $0.01 as fees on Solana rather than giving $0.04 for the transaction over Polygon (the most economical L2 solution constructed on Ethereum).
As per him, the developers of Ethereum should direct their attention toward the solutions that can develop the on-chain transactions of L1 in a more well-organized way with demanding considerably fewer charges. With the more complexity of smart contracts, people ought to pay more fees. Merten is of the view that there is a need for Ethereum to develop better marketing. Additionally to the technical advances, a team is required, which would be able to keep the community close and thrilled.
Three Arrows Capital leaves ETH and Stakes on AVAX (Avalanche)
It is noteworthy that just after some hours of Meter’s tweet, the CIO and CEO of Three Arrows Capital (Zhu Su) declared to have exited Ethereum to concentrate on Avalanche’s investments, a blockchain that competes with Ethereum. Indeed, the Twitter bio of the CEO in advance presents him being an AVAX, NFTs, DeFi, and crypto investor.