Ethereum creator Vitalik Buterin, known for his reserved and awkward nature, unexpectedly gave his speech at Singapore 2049 in the form of a concert, where he sang about the latest updates and his vision for the ecosystem.
But as fun as it was, Vitalik actually dropped some vital information. He focused on the impact of Ethereum’s Layer-2 networks, specifically Optimism and Arbitrum, while crypto enthusiasts sat captivated.
“Fees are lower, transaction speed is faster”
Vitalik emphasized that transaction fees, once a major barrier to adoption, are now essentially zero on Layer-2 networks, down from $10 to $0.50 per transaction. He pointed out that Ethereum’s gas fees had once reached as high as $200 during network congestion, a problem that Layer-2 solutions are now fixing.
These networks have made Ethereum more scalable and affordable. Vitalik even recalled paying over $800 in gas fees for a single privacy-preserving transaction in the past. This, of course, is no longer a reality with the advancements of these Layer-2 networks.
Beyond just lower fees, Ethereum’s transaction confirmation times have improved significantly after transitioning to a proof-of-stake network in September 2022, after the Merge. Vitalik explained how the waiting time for transaction confirmations has been cut in half, with transactions now being confirmed in as little as 5 to 15 seconds.
“We need to satisfy the needs of mainstream adoption and hold on to open-source and decentralization values,” Vitalik said.
He urged the crypto community to remain practical without sacrificing the industry’s core principles.
Ethereum’s struggle continues
Vitalik also touched on the ongoing competition between Ethereum and Bitcoin, with Bitcoin’s dominance currently at 58%.
While Bitcoin remains relatively stable, Ethereum has stayed under $2,500 for months. Ether has seen net negative outflows of $581 million since launch. Data shows that Grayscale accounted for $2.7 billion of those outflows.
Then there is also the matter of the dip in Ethereum’s decentralized application (DApp) activity, which is now at a -19% weekly. Meanwhile, competing blockchains like Solana and BNB Chain saw increases by 24% and 23%, respectively.
ETH’s price also hit a key technical level, struggling to push past the 20-day EMA at $2,397 on September 17.
Bulls tried but failed to break through. If the current support level gives way, Ether could tumble further, possibly hitting $2,111 or even $2,000.
But if bulls can push the price above the 50-day SMA at $2,553, Ether could rally up to $2,850, and eventually, possibly $3,000.
