introduction:
Since Ethereum was stuck at $4,700 three years ago, many people have been expecting Ethereum to recover and get out of the trap. However, recently hearing that Bitcoin has risen to $93,000, many people feel that Bitcoin has been untied. In contrast, the price of Ethereum is still hovering around $3,000. What is the reason behind this? Today, we will analyze Ethereum's current predicament from the perspective of "the rise and fall of dynasties".
1. Ethereum “Regime”
The difference from commercial companies: Commercial companies usually rely on cash flow to survive, either by selling products or by financing; Ethereum, on the other hand, has no pressure on cash flow. It is more like a regime that survives through "taxation" and "investment attraction."
Do business: Earn cash flow through cooperation with foreign countries.
Tax collection: Ethereum charges transaction fees through gas fees.
Investment attraction: attract new projects and asset issuance to expand the Ethereum ecosystem.
II. The rise and fall of “political regimes”
Ethereum’s heyday: It was once the core platform for crypto projects and the “kingdom” that entrepreneurs must choose. However, as time went by, the dynasty gradually declined, and there are three main reasons behind it:
1. "Coup": Ethereum's founders and early developers frequently rebelled, leading to internal divisions. For example, founders such as Charles and Kaimen Wu left and turned to develop competing chains such as Cardano and Polkadot. Although these "official changes" did not immediately affect Ethereum, they reflected the turmoil of the core team.
2. Civil unrest: The wavering of supporters, especially miners and early supporters of Ethereum. After Ethereum switched from PoW (proof of work) to PoS (proof of stake), it offended the miners.
3. Foreign invasion: Ethereum faces competition from other public chains, especially the rise of high-performance chains such as Bitcoin and Solana.
III. Analysis of the “coup”
Internal rebellion: Ethereum’s early founders and developers left one after another and launched their own projects. These “official changes” have had a huge impact on the Ethereum ecosystem during its development. For example, Carano and Polkadot, founded by Charles, were called “Ethereum killers”, but they did not pose a substantial threat to Ethereum in the early stages because Ethereum had many supporters.
Ethereum's central government: Ethereum's founder, Vitalik Buterin, is not the "Son of Heaven" but a virtual ruler. He holds an important position in the Ethereum Foundation, but he is not the only decision maker. Other senior developers and team members also play important roles. However, recently some members have openly opposed Vitalik Buterin, and some members have been bought by external capital, which has caused dissatisfaction in the community.
4. Rebellion of the Princes:
External challenges and internal competition
The rise of Level 2 chains: In order to cope with performance bottlenecks, Ethereum has promoted the development of multiple Level 2 chains. However, these "vassal chains" often set up their own business, forming competition with the Ethereum main chain. The rise of high-performance chains such as Solana and Avalanche poses a threat to Ethereum.
The rise of BNB chain: BNB chain, which was originally derived from Ethereum, has gradually become independent and has become an independent ecosystem. There are also some other chains that have not only inherited some of Ethereum’s ideas during their development, but also created more efficient solutions for themselves.
5. Foreign invasion: the strong rise of competing chains
The rise of Solana: Solana and other high-performance chains (such as Avalanche, BNB, etc.) are gradually taking over Ethereum's market share. Especially in the fields of AI and payment, Solana and Base chain are developing rapidly, attracting a lot of capital and users. These chains have technical advantages and are supported by big capital.
Competition in the AI track: Solana and Base chain's innovations in the field of AI, especially in payment and smart contracts, have gradually surpassed Ethereum and seized the market opportunity.
6. “Civil uprising”: loss of supporters
Miners’ resentment: After Ethereum switched from PoW to PoS, it offended a large number of early supporters, the miners. The departure of miners caused a major blow to the Ethereum ecosystem.
The dilemma of e-commerce users: Many e-commerce users are the foundation of the Ethereum ecosystem, but in the absence of practical application scenarios for Ethereum, the support of these users has gradually decreased, and they have turned to other chains.
Investor disappointment: The Ethereum Foundation frequently sold its own ETH, which severely hit investor confidence. The Foundation sold a large amount of ETH at a high point, exacerbating the selling pressure in the market.
In conclusion:
Ethereum’s dynasty seems to have entered its final years. Facing internal and external troubles, whether it can return to its peak remains an unknown. In this “dynasty rise and fall” of cryptocurrency, whether history will repeat itself, or whether Ethereum can avoid “decline” through self-reform, is worth our continued attention.
Who do you think will be the protagonist in the future Web3 era? Bitcoin? ETH? SOL?
introduction:
Since Ethereum was stuck at $4,700 three years ago, many people have been expecting Ethereum to recover and get out of the trap. However, recently hearing that Bitcoin has risen to $93,000, many people feel that Bitcoin has been untied. In contrast, the price of Ethereum is still hovering around $3,000. What is the reason behind this? Today, we will analyze Ethereum's current predicament from the perspective of "the rise and fall of dynasties".
1. Ethereum “Regime”
The difference from commercial companies: Commercial companies usually rely on cash flow to survive, either by selling products or by financing; Ethereum, on the other hand, has no pressure on cash flow. It is more like a regime that survives through "taxation" and "investment attraction."
Do business: Earn cash flow through cooperation with foreign countries.
Tax collection: Ethereum charges transaction fees through gas fees.
Investment attraction: attract new projects and asset issuance to expand the Ethereum ecosystem.
II. The rise and fall of “political regimes”
Ethereum’s heyday: It was once the core platform for crypto projects and the “kingdom” that entrepreneurs must choose. However, as time went by, the dynasty gradually declined, and there are three main reasons behind it:
1. "Coup": Ethereum's founders and early developers frequently rebelled, leading to internal divisions. For example, founders such as Charles and Kaimen Wu left and turned to develop competing chains such as Cardano and Polkadot. Although these "official changes" did not immediately affect Ethereum, they reflected the turmoil of the core team.
2. Civil unrest: The wavering of supporters, especially miners and early supporters of Ethereum. After Ethereum switched from PoW (proof of work) to PoS (proof of stake), it offended the miners.
3. Foreign invasion: Ethereum faces competition from other public chains, especially the rise of high-performance chains such as Bitcoin and Solana.
III. Analysis of the “coup”
Internal rebellion: Ethereum’s early founders and developers left one after another and launched their own projects. These “official changes” have had a huge impact on the Ethereum ecosystem during its development. For example, Carano and Polkadot, founded by Charles, were called “Ethereum killers”, but they did not pose a substantial threat to Ethereum in the early stages because Ethereum had many supporters.
Ethereum's central government: Ethereum's founder, Vitalik Buterin, is not the "Son of Heaven" but a virtual ruler. He holds an important position in the Ethereum Foundation, but he is not the only decision maker. Other senior developers and team members also play important roles. However, recently some members have openly opposed Vitalik Buterin, and some members have been bought by external capital, which has caused dissatisfaction in the community.
4. Rebellion of the Princes:
External challenges and internal competition
The rise of Level 2 chains: In order to cope with performance bottlenecks, Ethereum has promoted the development of multiple Level 2 chains. However, these "vassal chains" often set up their own business, forming competition with the Ethereum main chain. The rise of high-performance chains such as Solana and Avalanche poses a threat to Ethereum.
The rise of BNB chain: BNB chain, which was originally derived from Ethereum, has gradually become independent and has become an independent ecosystem. There are also some other chains that have not only inherited some of Ethereum’s ideas during their development, but also created more efficient solutions for themselves.
5. Foreign invasion: the strong rise of competing chains
The rise of Solana: Solana and other high-performance chains (such as Avalanche, BNB, etc.) are gradually taking over Ethereum's market share. Especially in the fields of AI and payment, Solana and Base chain are developing rapidly, attracting a lot of capital and users. These chains have technical advantages and are supported by big capital.
Competition in the AI track: Solana and Base chain's innovations in the field of AI, especially in payment and smart contracts, have gradually surpassed Ethereum and seized the market opportunity.
6. “Civil uprising”: loss of supporters
Miners’ resentment: After Ethereum switched from PoW to PoS, it offended a large number of early supporters, the miners. The departure of miners caused a major blow to the Ethereum ecosystem.
The dilemma of e-commerce users: Many e-commerce users are the foundation of the Ethereum ecosystem, but in the absence of practical application scenarios for Ethereum, the support of these users has gradually decreased, and they have turned to other chains.
Investor disappointment: The Ethereum Foundation frequently sold its own ETH, which severely hit investor confidence. The Foundation sold a large amount of ETH at a high point, exacerbating the selling pressure in the market.
In conclusion:
Ethereum’s dynasty seems to have entered its final years. Facing internal and external troubles, whether it can return to its peak remains an unknown. In this “dynasty rise and fall” of cryptocurrency, whether history will repeat itself, or whether Ethereum can avoid “decline” through self-reform, is worth our continued attention.
Who do you think will be the protagonist in the future Web3 era? BTC? ETH? SOL?
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Text source: Da Piaoliang
