Bitcoin has exceeded 62,000. It can be said that this round of rise is really unpredictable. Many people have miss the pump out. What about those who missed it? Why is it said that it will be the turn of the Ethereum ecosystem to explode next? How can we ambush it in advance?
What are the major benefits for Ethereum in 2024? What tracks are currently worth ambushing in the Ethereum ecosystem?
Why is the Ethereum ecosystem about to explode?
What are the major benefits for Ethereum this year? The first benefit is that the Cancun upgrade is coming. An important Ethereum update, which is EIP 4844, is planned to be carried out in March this year, so its goal is to Improve the efficiency, scalability and security of the Ethereum blockchain.
This update will reduce the cost of these layer 2 ecosystems built on Ethereum by 10 times, and the gas fees will also be reduced accordingly. This will greatly promote the utilization of the entire Ethereum and layer 2, and this Cancun upgrade , it will open the dice era in the Ethereum roadmap. It can be said that this will be a key turning point in this cycle, because Ethereum needs to use layer 2 to expand, and these layer 2 sub-chains and professional development The team is also promoting the rapid growth of layer 2.
Now we have just caught up with the big bull market that has just started, so I think these project plans will definitely be full of energy. Everyone has been waiting for 4 years and will never miss this opportunity again.
In addition, I think what is worth looking forward to is the integration of verkle numbers on the Ethereum blockchain. What is this? It can actually reduce the need for disk space, increase the functionality of these pledge nodes, and improve its overall user experience. This will make Ethereum from usable to easy to use, which will also attract more users.
The second major benefit is the expectation that the Ethereum spot ETF will be approved. We can see that many institutions have submitted applications, including bright lock, which is the black gray scale get c, and Cathie Wood’s AIK Funds, etc., these institutions have already submitted relevant applications to the SEC.
The person in charge of Grayscale ETF currently believes that there is a 50% chance that the SEC will approve the conversion of Ethereum from a trust to an ETF in May this year. In addition, an American investment bank showed in their research report on February 19 that there is a 50% probability that the Ethereum spot ETF will be approved in May this year, and by the end of this year, this probability can reach almost 100%.
Therefore, it is only a matter of time before the Ethereum spot ETF is approved. In fact, when the Bitcoin spot ETF is approved, we can already foresee it, but the point is that judging from the experience of the Bitcoin ETF being approved, in fact Most of the increase occurs in the expected stage before approval, because in the expected stage everyone is speculating on the news. When the shoe hits the ground, that is, after it is actually approved, the price may actually fall. This is from the above We can sum up some experiences from the situation when Ethereum Shanghai was upgraded.
Although there was a decline after the last upgrade of Ethereum, I think the situation may be a little different this time, because the last upgrade was also in a bear market, but we are now 100% sure that the bull market has arrived, so this is After an Ethereum Cancun upgrade, I think there may be a short-term decline, but there may be a big rebound afterwards, so everyone must abide by the 10 golden rules in the bull market. Don’t forget the decline in the bull market. Don’t be afraid, every time is a good opportunity to buy the dips. Everyone should always observe the market dynamics to be prepared.
The third major benefit is the implementation of Ethereum ecological applications. It can be seen that since the last bull market cycle, there have been many so-called Web3 killer applications on the chain. In fact, not many of their project parties are seriously maintaining them. , and in the previous period, we had to compete with the hype between these coins and FTT for development space, so this is also the reason why everyone has seen that the Ethereum ecosystem has not improved in recent times.
But in 2024, the rules of the game will change, and the Ethereum ecosystem is entering a period of professionalization. The current largest L2, which is what we call the second layer network, is being subdivided into specific configurations and specialized teams and structures. I believe that this year we can see many high-quality applications being launched. Many applications in the Ethereum ecosystem will change from usable to easy to use. This will attract more users and will surely trigger the re-prosperity of the Ethereum ecosystem.
The next benefit is the deflationary nature of Ethereum. In fact, since the last merger of Ethereum, ETH has already had deflationary characteristics. Since September 2022, the supply of Ethereum has decreased by about 370,000 pieces, which accounts for 0.21% of the total amount, Ethereum stakers received more than 1.06 million rewards. However, during the same period, the number of ETH permanently destroyed by Ethereum's new destruction mechanism exceeded 1.4 million.
In the past two weeks, more than 21,000 ETH have been destroyed, with a value of 22.8 million US dollars, so everyone here should pay attention to knowing that Bitcoin is about to be halved, which means that its mining volume will increase. Less, but it is not deflation, but Ethereum is not only not growing, but its quantity is still deflating, so there is a voice in the market that is, will Ethereum surpass Bitcoin in the future? If you look at it from the perspective of deflation alone, it is really not impossible.
Finally, let’s take a look at what we are most concerned about: What tracks are worth ambushing in the Ethereum ecosystem?
The first track is undoubtedly the layer 2 network of Ethereum, which will be divided into two layer 2 tracks, Optimistic and ZK roll up.
I think the second track that deserves attention is dAPP and data storage. The third track is the RAAS service provider. I think everyone can also pay attention to this.
The fourth track is about LSD and repeated staking. So, which coins in each track are worthy of our ambush? Due to time constraints, I will share with you and conduct detailed analysis in the next article.
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