Ethereum, a second top-ranked Cryptocurrency by market cap, has been facing challenges in terms of achieving price growth. Although the Ethereum blockchain network has better technical potential and market dominance, the trade price of Ethereum’s native coin, $ETH, raised big concerns among crypto investors and enthusiasts.
The current trade price of the Ethereum ($ETH) coin is $3,091 & this price level is 6.5% down over the last 24 hours time period.
Despite the struggle in the trade price of this Cryptocurrency, the majority of the crypto experts are optimistic about its future performance. Just a day ago, a popular crypto analyst on X, “ Ali_Chart”, said that he is bullish on Ethereum & expects ETH coin to hit $6,770 from this level soon.
With this long report, we tried to unearth the key problems, solutions proposed by Ethereum’s leadership, and the current plans to accelerate its development.
Problems Retarding Ethereum Blockchain’s Growth
- Slow Development
Experts noted that Ethereum’s upgrade-related development speed has been slowed down enough & for this Ethereum community leaders were criticized by the top ETH believers also. Some crypto enthusiasts noted that they are not focussing on scalability and user experience issues. For example, Paradigm, a top venture capital firm, asked the Ethereum Foundation not to delay the essential upgrades in the Ethereum blockchain to protect the decentralization of the network. Alternatively, we can say that Paradigm demanded to focus on rapid upgrades by simultaneously maintaining the decentralization efforts.
- Financial Management Concerns
The Ethereum Foundation’s recent financial activities have raised the eyebrows of ETH coin investors. On-chain data showed that the Ethereum foundation sold nearly 100 ETH at the trade price of $3,078.93 & collected 307,893 DAI. In only the last 27 days, EF has sold 300 ETH. Top ETH believers raised questions about the reliance on selling ETH instead of leveraging staking or DeFi income, as previously suggested by the Ethereum co-founder Vitalik Buterin.
- Decentralization vs. Speed
However, the majority of the top flagship crypto leaders advocate for balanced decentralization with faster development, but the same vision for Ethereum strives to remain neutral. For achieving & maintaining decentralization, slow development progress risks losing ground to competing with other top blockchain networks that are highly scalable.
Latest Solutions Proposed by Vitalik Buterin
Vitalik Buterin has shared a new plan to fight against these ongoing challenges. The Ethereum Foundation is also undergoing significant leadership restructuring, with new goals:
- Enhancing Technical Expertise
They are aiming to bring in technically skilled leaders to ensure the foundation operates at the forefront of innovation with new technical transitions.
- Strengthening Ethereum Ecosystem Ties
To increase the Ethereum ecosystem’s communication with crypto project participants such as app crypto devs, crypto wallet service providers, and Layer 2 (L2) network developers.
- Boosting Development Execution Speed
Recruiting fresh talent to accelerate fast decision-making and implement innovative upgrades with fast speed, on behalf of the competition.
- Focusing on Key Values
Providing better support for Dapp developers to prioritize fundamental crypto values like privacy, open-source development, and censorship resistance.
- Decentralized Operations Under Better Leadership
Increasing the use of Ethereum ecosystem-based decentralized technologies for digital payments, treasury management, and ecosystem support.
Ethereum co-founder against politics
The Ethereum co-founder ensured that the Ethereum foundation would avoid non-crypto activities such as aggressive lobbying of regulators or political celebrities, shifting from neutrality to vested interests or centralized control, and avoiding becoming a primary decision-maker within the Ethereum ecosystem.
Paradigm’s Call for Accelerated Development
Just a day ago, a top Crypto VC firm, Paradigm, jumped against the ongoing problems with the Ethereum & Ethereum foundation. They advocated for multiple major upgrades per year around the Ethereum blockchain ecosystem & favour non-controversial improvements.
They recommended optimizing Ethereum network scalability, making Ethereum more efficient and faster than other networks, enhancing user experience, and simplifying the ecosystem for better interactions for both developers and end-users, advancing roll-up technology to scale Ethereum effectively.
Vitalik Buterin’s New L1 & L2 Plan
In a recent development, Vitalik shared his latest plan to emphasize the collaboration between Ethereum’s base layer (L1) and scaling solution networks (L2).
Vitalik proposed the idea of reducing dependence on the Ethereum Network (L1) & encouraging developers to build on L2 so that congestion can be minimized on the main Ethereum chain.
He also proposed incentives for the L2 developers, for developing apps and wallets to transition to L2, improving scalability and lowering costs.
Recommendations for the Ethereum Foundation
On behalf of the Crypto entrepreneur’s suggestions, the Ethereum community leadership needs to follow four new approaches to fight against the ongoing challenges.
- Transition to Alternative Income Models The Ethereum foundation should follow the new earning sources alongside relying on staking and DeFi yields or selling ETH to preserve Ethereum’s integrity and market confidence.
- Accelerate Non-Controversial Upgrades Foundation should Implement frequent blockchain updates to improve the ETH network’s scalability and security and push the user experience to the next level without disrupting the decentralization nature.
- Enhanced Community Engagement. Increase collaboration & ties with crypto developers, users, and institutional actors to build trust and encourage innovation in the Ethereum blockchain environment.
- Transparent Financial Activities. The Ethereum Foundation should ensure clear communication with better financial decisions to mitigate scepticism regarding ETH sales.
Conclusion
Ethereum’s price struggles stem from developmental, financial, and operational challenges. However, with visionary leadership from Vitalik Buterin and support from the Ethereum community, the blockchain is poised for growth. By prioritizing scalability, user experience, and decentralization, Ethereum can maintain its position as a leader in the cryptocurrency space.
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