Ethereum seems to be struggling compared to Bitcoin, showing a -17% performance for the year against the leading cryptocurrency, which suggests a downward trend. This situation impacts not just the Ethereum/Bitcoin pairing but also all altcoins, since most of them, except for BNB, have not reached their previous all-time highs.
I personally think this indicates a lack of recognition for Ethereum and altcoins. Ethereum’s community keeps growing every day, and it has solid basics: it’s useful, innovative, and has the potential to make a big impact. We’re hopeful future updates will tackle the gas fee problem, bringing in more users to its ecosystem.
With a possible altseason coming up, it might be a good idea to start building positions in Ethereum and other strong altcoins. Once money starts moving away from Bitcoin and these assets are recognized, they could easily outperform many others, including Bitcoin.
Both Bitcoin and Ethereum hold significant market dominance because of their early start. Bitcoin changed the way we think about owning digital assets, while Ethereum made it possible to create programmable digital assets.
There are definitely better technologies out there that could take their places, and if Web3 is successfully integrated into everyday life, I could see both BTC and ETH becoming less relevant due to their scalability problems, like high fees.
I know this might ruffle some feathers, so feel free to challenge my views. I’m interested in hearing different perspectives.
@Azriel
I see your point. I think Ethereum could be replaced down the line, but it will take a while. That’s why I mention its current undervaluation.
The time it has had to build a large community and trust has placed both assets well above others whose protocols might be more efficient. This is something I don’t think will change soon. Google isn’t the best search engine in every way, yet it still dominates the market.
As for Bitcoin, I believe there’s no second best. That’s a topic I’d like to explore more in a separate post.
@Wylder
I don’t disagree with your thoughts on Ethereum. There’s a strong argument for its resilience and value now that ETFs are beginning to appear.
Regarding your views on Bitcoin, I eagerly anticipate that post from you. Until recently, I thought Bitcoin stood alone, but after hearing Michael Saylor’s commentary, I’ve changed my mind about that stance completely.
I still appreciate Bitcoin, but I now believe there must be a second best, and I consider Bitcoin as that second best.
I’ve heard discussions about a few alternatives, but I think Kaspa is the strongest contender.
Like Bitcoin, Kaspa is decentralized and proof of work. Its approach to security is solid. When measuring against the trilemma, it accomplishes the same goals Bitcoin does, particularly decentralization and security. The main issue people have with Bitcoin is its scalability, given the slow block times, limited block sizes, and high transaction fees.
I still love Bitcoin, it was the pioneer, but if you’ve used it, you know the struggle of dealing with slow transactions and high fees.
Kaspa incorporates the best elements of Bitcoin while addressing scalability through BlockDAG consensus. Discovering it was exciting for me as I’m a fan of Proof of Work and scaling seemed like an impossible obstacle until Kaspa emerged.
@Azriel
Sure, there might be more advanced tech than ETH, but can they manage the high volume ETH sees in real time without slowing down and resulting in high fees?
Does being the best technically guarantee popularity? Remember when Solana shut down for a while? It’s not the best but still thrives even after facing serious issues.
Ethereum might feel old-fashioned, but it has changed quite a bit since its inception and has the capacity to keep changing. It could still reach a nearly perfect state, though it still has some hurdles to overcome.
@Azriel
It’s still not clear if there’s a better platform for smart contracts than Ethereum. There are certainly faster and cheaper alternatives, but they often compromise on decentralization or only have those benefits when transaction volumes are low.
And sure, ETH is centralized through AWS, but platforms like Solana or BSC are inherently centralized due to their hardware needs. Ethereum has certain requirements for running a validator and still allows a broader distribution,
Plus, I haven’t found any better user experiences with dapps than what I’ve encountered on Polygon or Arbitrum, although I do agree that bridging can be a real hassle.
Can someone remind me who really uses Ethereum in practical situations and for what purpose? Outside of the DeFi bubbles, what real benefit does ETH bring to any supply chain or service that actually helps a customer?
Please don’t mention liquidity pools, crypto games, staking, etc. Let’s talk about how this fits into the larger picture of real-life applications. Where is ETH actually useful?
Amelia said: @Briley
Check out Paul Brody, StarLight and NightFall from EY.
Is there something I should specifically check? I found an hour-long video about “day 2 revolutions in supply chains thanks to blockchain” and it features someone from Italy with poor audio talking about potential benefits. However, she admitted there hasn’t been any feedback from clients yet… so far, I haven’t heard them mention actual use of ETH with clients.
I’m not doubting the value of blockchain technology at all. I’m convinced it’s here to stay.
What I’m questioning is the actual value of specific cryptocurrencies like ETH when anyone can create their own blockchain, or get someone like EY to build a blockchain for their needs without having to deal with all the risks third parties come with.
@Briley
Private credit sector - These operations are usually kept away from the public.
Banks and asset managers - A few of them are beginning to tokenize their assets, though not everyone is eager to go public about it. They’re also settling transactions via stablecoins on Ethereum.
Exchanges - Well, there are your decentralized exchanges and perpetual exchanges that conduct significant portions of their operations on Ethereum.
Small businesses - Some are skipping traditional payment processors like Stripe and Square, opting for crypto payments to minimize transaction fees. I’ve noticed a rise in demand for cheaper alternatives. Many of them are landing on Ethereum.
@Mia
I appreciate your input, but you haven’t named a single company or brand.
The “private credit sector” approach sounds what I would call shady. Who are these private lenders? Are they reputable businesses or shady loan sharks trying to evade taxes?
Exchanges are part of the crypto bubble and not real-life examples. If someone is running a genuine business on Ethereum, I want to hear a clear, specific example. I struggle to see how anyone would operate a real business using tokens that are so volatile.
As for small businesses, has anyone made significant profits thanks to crypto? There’s only so much we can draw from the Bitcoin pizza story! Can we confidently say that this sector is robust enough to justify ETH’s value? We all know cryptocurrency has been frequently used for illicit activities. That’s not the direction we’re aiming for, right?
This is precisely what I’m getting at: what tangible real-life applications can actually justify ETH’s perceived value?
@Briley
For the private credit, check out rwax.xyz - that’s just peer-to-peer lending for businesses. This was already around but has been improved through smart contracts. You can find the tokenized funds on that site too.
Regarding your point on volatility, yes, ETH fluctuates, which is why payments are usually made using stablecoins. It’s interesting how often that point comes up.
About small businesses, this trend appears to be more common outside the US, especially in South America, Southeast Asia, and Africa. I can’t name specific businesses, and obviously, sharing my own wouldn’t count. But the volume of stablecoin transactions across the globe is significant enough to suggest it is indeed being used for various businesses, even if it’s not as clear-cut in the US due to legal limitations.
Currently, the best use case seems to be asset tokenization and settlements using stablecoins. In the rest of the world, cash can be pretty hard to come by.
@Mia
I have firsthand experience with high inflation in a third world country where USDT is widely used. I saved in USDT during periods of devaluation and utilized it for international transfers after selling everything and relocating.
I comprehend this topic thoroughly, and I did my research years ago.
I’ve invested in BTC, lost some with lesser-known coins, and put my trust in certain platforms, only to see them fail. My question is straightforward, yet year after year, I still hear no satisfactory response, and there’s no clear evidence supporting claims of ETH’s value.
According to rwax.xyz, they’ve issued just 1908 loans—hardly a significant number! Meanwhile, we all know that crypto has been used, in many cases, for illicit purchases, which tends to overshadow legitimate transactions.
It seems like you shifted the focus. We were discussing real-world use for ETH that validates its market price, but now it appears we’re back to talking about stablecoin settlements.
It suggests moving the goalposts. Ultimately, the truth seems to be that no one is genuinely using ETH for anything tangible outside of the crypto bubble. If that were the case, we would see headlines like, “Nike adopts ETH for supply chain tracking” or “Toyota employs ETH for customer transactions”… but we’re simply not seeing that.
@Briley
Seems like you had a bad experience and now approach this with skepticism. You jumped into CRO seeking quick profits. Did you actually use any of the DeFi products they promoted? The sheer amount of yield farming should have served as a hint about potential risks.
Stablecoins are reliant on ETH, and their value is intertwined with its transactions. Smart contracts on Ethereum underpin everything. It’s amusing that you don’t see the value in this, especially given your background with stablecoins.
The total value of those loans at rwax continues to grow.
The Ethereum Foundation does not operate as you implied. They mostly do research and ensure the maintenance of the source code.
And remember, cash has also been used for illegal activities. Does that make cash bad?
Ethereum serves like financial infrastructure. The value lies in the culmination of assets and transactions processed. Simple as that. Most people will likely use these interfaces without even realizing they’re engaging with a blockchain—this is actually a positive development, as illustrated by Coinbase’s introduction of their smart wallet. This all takes time. Anyone can build on it, and everyone can trade, even those misusing it. That’s just how open, decentralized ecosystems operate.
Apologies for not directly answering your questions as you wished. Perhaps you could do some research instead of relying solely on ads and statements from others.
Can someone remind me who really uses Ethereum and what for?
Almost nobody. Ethereum isn’t widely used beyond crypto. That doesn’t make it a poor investment though.
You have to think about how traditional finance took hundreds of years to form. We’ve seen so many scams, and established regulations to thwart them. There’s much trust in these traditional systems as they generally keep your funds safe.
Crypto, on the other hand, is only about 15 years old. New scams keep emerging each year, and regulations in crypto are nearly nonexistent. Trust in crypto is quite low since there isn’t much protection for your investments—it’s a high-risk environment filled with unresolved issues. If you invest in crypto, you could very well lose everything. The market is still very speculative.
It will take upwards of 20 years for ETH and other cryptos to genuinely blend into society. Firstly, governments have to create more robust regulations for crypto. Secondly, these digital currencies have to establish trustworthiness among everyday consumers; most currently see crypto simply as a gamble (and fair enough, as many treat it this way). Thirdly, older generations need to shift before adoption rates can climb; it’s challenging for baby boomers to embrace crypto, and I doubt this will change any time soon.
If you are buying crypto, you must do so with a long-term vision in mind. It’s not a quick buy-and-sell plan; it’s about holding it until retirement. I believe Ethereum will eventually integrate into daily life just like Facebook and Google, but it’s going to take some time.
@Briley
Nothing is truly operational as a crypto solution right now. We’re still awaiting a major breakthrough (though I remain hopeful one will come).
Dax said: @Briley
Nothing is truly operational as a crypto solution right now. We’re still awaiting a major breakthrough (though I remain hopeful one will come).