Author: Jocy @IOSG

Foreword

Recently, the discussion heat of Consensus HK has gradually cooled down, and the industry sentiment is generally depressed, with many people believing that the market has entered a bear market. At the same time, the trip to Hong Kong also showed the frenzy of speculation - P Xiao Jiang and KOL gods have become the focus by virtue of their extreme pursuit of trading. However, in stark contrast, the Ethereum ecosystem appears to be lifeless. Long-term holders are starting to turn to Solana, entrepreneurs lack motivation, and short-term traders are taking the lead. Is this a manifestation of Ethereum's lack of crisis awareness? The market seems to be sounding the alarm for this phenomenon.

The Prevalence of Short-termism: The Collapse of Industry Values

When the bull market ends, speculators take the stage, and the industry is filled with ruthless arbitrage behavior. Exchanges lowering the listing standards, top-tier projects using TGE to cash out, and market makers earning huge profits all indicate that the industry is shifting from long-term to short-term bubble. Practitioners choose to leave because they see no hope, and the teams that persist in entrepreneurship face huge challenges. This short-sighted behavior not only affects market confidence, but also shakes the foundation of the industry.

Challenges and Transformation of the Ethereum Ecosystem

TL;DR: The founder of Denver infra is pessimistic, but the founders in the application and AI fields are full of confidence.

In Denver, many developers who have been deeply involved for years suddenly realized the risks of financing difficulties and token zeroing. They began to reflect on the problems of Ethereum and try to transform. Some tech-savvy founders are tired of developing protocols without end-user demand, and have turned to the field of AI research. If these core forces are lost, Ethereum's infrastructure may regress by 3-5 years.

The Potential of AI and Web3 Integration

Although Denver was initially considered to lack highlights, with the emergence of more AI*Web3 projects, we see the Ethereum community's positive embrace of emerging technologies. Capital and entrepreneurs are exploring innovative fields such as DeTraining, Inference, and DePIN. For example, the successful cases of Paradigm-invested Nous Research and Groq show that AI is injecting new vitality into Web3.

▲ RobotAI launched by Openmind and Yushu Technology, and the open-source product displayed by DePAI in Denver

Macro Tailwinds, New Opportunities for Crypto

Unlike Asia, US institutions are optimistic about crypto policies. After the policy of banks accepting crypto asset custody is passed, the lending rate is expected to drop to 3-4%, or even negative interest rates. In addition, industry giants like Uniswap and Coinbase are designing Tokenized Securities models to attract more traditional investors into the market.

Reconstructing Ethereum Governance: Towards Mainstream and Commercialization

At the ETHGlobal event in Denver, Ethereum core developers revealed the upcoming organizational structure adjustments. @Etherealize will shoulder the mission of the new era ConsenSys, helping Ethereum achieve commercialization. Meanwhile, the core members of the Foundation are also actively exploring a sustainable development path.

▲ In the 2019 Ethereum hackathon selection day in Beijing, Vitalik was sitting next to Co-EDs Hsiao-Wei

Vitalik Needs to Encourage More Application Entrepreneurs

Currently, the importance of technical R&D may no longer exceed application innovation. Ethereum needs to produce cross-generational killer applications to instill confidence in ecosystem builders. Capital accumulators in the industry should contribute their efforts to support open-source organizations and young entrepreneurs. In addition, exchanges can set aside 1-2% of their annual revenue to support the development of the Ethereum ecosystem.

Ethereum will not perish, it is the most successful decentralized organization in the Web3 industry. Looking to the future, cherish the Ethereum you hold and view its value and innovation in a ten-year perspective.

Maintaining confidence and optimism is particularly important in turbulent times.