Ethereum Ecosystem: Major Benefits This Year

First of all, why is it said that the Ethereum ecosystem is about to explode? Let’s take a look at what major benefits Ethereum will have this year?

The first good thing

The Cancun upgrade is coming soon, as well as Ethereum EIP 4844, which is planned to be carried out in March this year. Its goal is to improve the efficiency, scalability and security of the Ethereum blockchain. This upgrade and update will reduce the cost of these layer 2 ecosystems established by the Ethereum network by 10 times.

Gas fees will also be reduced accordingly, which will greatly promote the usage of the entire Ethereum and layer 2. And this Cancun upgrade will usher in the era of colored paper in the Ethereum roadmap. It can be said that this will be a key turning point in this cycle.

Because Ethereum needs the help of layer 2 to expand, and these layer 2 sub-chains and professional development teams are also promoting the rapid growth of layer 2. Now we have just caught up with the big bull market that has just started, so I think these project plans I will definitely work hard. Everyone has been waiting for 4 years and will never miss this opportunity again.

In addition, I think what is worth looking forward to is the integration of vocal technology on the Ethereum blockchain. So what is this? It can actually reduce the disk space requirements, increase the functionality of these staking nodes, and improve their overall user experience. This will transform Ethereum from usable to easy to use, and will also attract more users.

The second major benefit

This is the expected shipment of Ethereum spot ETF. Currently, many institutions have submitted applications, including Bradlock, which is Blackstone, Grayscale Galaxy, and Sister Mu’s Ark Fund, etc. These institutions have already submitted to the SEC. related applications. The person in charge of Grayscale ETF currently believes that there is a 50% chance that the SEC will approve the conversion of Ethereum from a trust to an ETF in May this year.

There is also an American investment bank. Their research report on February 19th showed that there is a 50% probability that the Ethereum spot ETF will be approved in May this year. The probability of approval before the end of this year can reach 100%.

Therefore, it is only a matter of time before the Ethereum spot ETF is approved. In fact, we could have foreseen this when the Bitcoin spot ETF was approved.But the key point is that judging from the experience of Bitcoin ETF approval, in fact, most of the increases occurred before approval. This is the expected stage, because during the expected stage everyone is speculating on the news.

The third major benefit

It is the implementation of Ethereum ecological applications. We can see that since the last bull market cycle, there have been many so-called Web3 killer applications on the chain. In fact, their project parties are seriously maintaining them. There are not many anymore, and before During this period of time, we have to compete with the hype between these MEME coins and NFTs for development space. Therefore, this is also the reason why everyone has seen that the Ethereum ecosystem has not improved in recent times.

But in 2024, the rules of this game will change. The Ethereum ecosystem is entering a period of professionalization. The current largest ayer2, which is what we call the second-layer network, is incorporating specific configurations and professional teams. By segmenting the structure and structure, I believe we can see many high-quality applications implemented this year.

Many applications in the Ethereum ecosystem will change from usable to easy to use, which will attract more users and will surely trigger the re-prosperity of the Ethereum ecosystem.

The fourth benefit

It’s the deflation of Ethereum. In fact, since the last merger of Ethereum, ETH has been deflationary. Since September 2002, the supply of Ethereum has decreased by about 370,000, accounting for 0.21% of the total. Ethereum pledgers have obtained The reward is more than 1.06 million pieces.

However, during the same period, the number of ETH permanently destroyed by Ethereum's new destruction mechanism exceeded 1.4 million. So in the past two weeks, more than 21,000 ETH were destroyed, worth $22.8 million.

So what everyone should pay attention to here is that we know that Bitcoin is about to be halved, which means that its mining volume will become less and less. But it is not deflationary, but not only is Ethereum not growing, its quantity is still deflating. So there is currently a voice in the market saying whether Ethereum will surpass Bitcoin in the future. If you look at it from the perspective of deflation, it is really not impossible.

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