At TOKEN2049 in Singapore, Ethereum co-founder Vitalik Buterin surprised attendees by delivering his speech in the form of a concert, performing songs about the latest developments and his vision for the Ethereum ecosystem.
While the performance was entertaining, Vitalik shared crucial insights, focusing on the impact of Ethereum’s Layer-2 networks, specifically Optimism and Arbitrum. The audience was captivated as he highlighted significant advancements in transaction fees and speeds.
“Fees are lower, transaction speed is faster,” Vitalik stated, noting that Layer-2 solutions have drastically reduced transaction costs, which now range from virtually zero to around $0.50, compared to previous highs of $10. He recalled a time when Ethereum gas fees soared to $200 during peak congestion, a challenge these Layer-2 solutions are now addressing effectively.
He also emphasized that transaction confirmation times have improved significantly since Ethereum’s transition to a proof-of-stake model in September 2022. The waiting time for confirmations has been slashed in half, now taking as little as 5 to 15 seconds.
“We need to satisfy the needs of mainstream adoption while upholding open-source and decentralization values,” he urged the crypto community to strike a balance between practicality and core principles.
Ethereum’s Ongoing Challenges
Vitalik also addressed the competition between Ethereum and Bitcoin, highlighting Bitcoin’s dominance at 58%. While Bitcoin remains stable, Ethereum has struggled to maintain a price above $2,500 for several months. Since its launch, Ether has experienced net negative outflows of $581 million, with Grayscale accounting for $2.7 billion of that total.
Additionally, Ethereum’s decentralized application (DApp) activity has dipped by 19% weekly, in contrast to competing blockchains like Solana and BNB Chain, which saw increases of 24% and 23%, respectively.
On September 17, ETH hit a crucial technical level, struggling to break past the 20-day EMA at $2,397. Bulls attempted to push through but faced setbacks. If current support weakens, Ether could drop to $2,111 or even $2,000. However, if bulls manage to push the price above the 50-day SMA at $2,553, a rally to $2,850—and potentially $3,000—could be in the cards.
