Written by: Alertforalpha
Compiled by: Blockchain in Plain Language
Ethereum holders are no strangers to dramatic market fluctuations. But this cycle? It feels like the roller coaster is constantly going downhill.
When Bitcoin hit a new high, Ethereum remained almost stagnant, even continuing to bleed. No new compelling narrative. No explosive growth. Just a slow erosion of market dominance, while faster and lower-cost competitors like Solana steal the spotlight. Now, Vitalik Buterin has proposed a radical new proposal that could fundamentally change how Ethereum operates. But is it already too late?
Vitalik's New Bet: Replacing EVM
At the core of Ethereum is the Ethereum Virtual Machine (EVM) - the decentralized engine driving smart contracts on the network. It has been the cornerstone since Ethereum's inception. But now, Vitalik suggests a thorough reform.
In a post on the Ethereum Magicians forum (a gathering place for Ethereum developers), Vitalik proposed the idea of replacing EVM with a new architecture called RSIV.
Simply put:
Existing contracts will remain fully functional.
New contracts can be written in Rust (a modern, highly popular programming language) and Solidity.
Interoperability will be maintained between the old and new systems.
The goal? Significantly improve Ethereum's execution efficiency and address one of its largest scaling bottlenecks.
Vitalik even hinted that this might be the only viable path to simplifying Ethereum's bloated execution layer - especially after abandoning the earlier sharding promise.
Theoretically, this sounds transformative.
In reality? RSIV might take years to materialize.
And that's the real problem.
ETH Stagnates, SOL Rises
While Ethereum discusses its next major upgrade, competitors haven't stopped moving.
Especially SOL, which is far ahead:
Processed 4.9 billion transactions in the past three months, far exceeding Ethereum.
Weekly network revenue reached $21 billion, capturing nearly 48% market share.
SOL's decentralized exchange (DEX) trading volume now leads all chains.
Meanwhile, Ethereum's data is not encouraging:
ETH/BTC ratio hit a historic low.
ETH ETF continues to lose assets, while Bitcoin ETF attracted billions of dollars.
Ethereum's market dominance dropped to 7%, about 66% lower than historical levels.
Price performance? Bitcoin rose nearly 50% in the past year, while Ethereum fell 50%.
Wall Street's choice is clear. The hottest funds in the crypto market are no longer flowing to Ethereum, but instead to Bitcoin and faster Layer 1 chains like SOL.
Even major players like Galaxy Digital are repositioning: on-chain data shows they've exchanged $100 million worth of ETH for SOL.
The Brutal Truth: ETH is Losing Its Momentum
Ethereum's current state sounds eerily similar to the former tech giant Nokia.
Just like Nokia in the smartphone war, Ethereum built an excellent platform that changed the world... but struggled to quickly adapt when newer, faster competitors emerged.
The brutal reality is: Ethereum has lost its narrative in this cycle.
In 2017, Ethereum was synonymous with ICOs.
In 2020, it was the king of Non-Fungible Tokens and DeFi.
In 2024, the biggest trend in crypto is memecoins - which almost entirely happened on SOL.
Ethereum lacks a compelling use case to drive massive new user adoption. Instead, it has fragmented into expensive Layer 2s, clumsy cross-chain bridges, and user experience friction.
Is RSIV a Game-Changer, or Too Late?
Vitalik's RSIV proposal is ambitious. Bold and fearless. Exactly the kind of big thinking Ethereum needs.
But the crypto world changes at the speed of light. The reality is, even if RSIV is flawless, building, testing, and deploying could take years.
By then, Solana, Sui, Aptos, and others might be even further ahead.
Ethereum is not beyond salvation - at least not yet. It still has around $50 billion in total locked value (TVL), still attracts loyal whale capital, and still commands institutional respect.
But it stands at a crossroads:
Continue slow, cautious upgrades - potentially fading into historical obscurity.
Or act quickly, innovate boldly, and fight to reclaim leadership in a rapidly changing market.
RSIV might be the beginning of a revival.
Or it might be the first nail in Ethereum's coffin if action comes too late.
