Ethereum ecosystem facing a turning point

As the crypto industry enters a new phase, the Ethereum ecosystem is undergoing significant changes. Recent industry activities have revealed some notable trends and challenges.

Short-termism prevails, with many participants seeking quick profits. Some traders adopt aggressive strategies, investing 90% of their funds in Bitcoin and using 10% for active trading. The rise of the attention economy has greatly increased the influence of opinion leaders. At the same time, the Ethereum ecosystem seems to be stagnating and lacking vitality. Some long-term holders are beginning to turn to other public chains.

This shortsighted behavior is shaking the values of the industry. Many participants abandon long-term ideals and become purely arbitrage tools. Exchanges may relax listing standards to support their own projects, while some large projects view token issuance as a cash-out opportunity. Market makers obtain free chips through their network of relationships and profit significantly during market downturns. This atmosphere is affecting developers who are committed to building and entrepreneurship.

The Ethereum ecosystem is facing severe challenges. Some long-established projects suddenly find it difficult to secure funding, and token values have plummeted to zero. Many founders are forced to rethink their product strategies and implement large-scale layoffs. For projects that have long focused on Ethereum, whether to continue staying in the ecosystem has become a difficult choice. Some tech-oriented founders are also starting to pivot towards emerging fields such as artificial intelligence.

However, crises also breed opportunities. The Ethereum community is actively embracing new technologies such as AI, exploring innovative applications like decentralized training and inference. Some developers are committed to bringing AI agents into Web3 scenarios. Meanwhile, the regulatory environment in the United States is becoming more lenient, which may bring new liquidity to the industry. In the next two years, as more traditional enterprises and government entities enter Layer 2 networks, it is expected to drive the growth of Ethereum Layer 1.

The Ethereum Foundation is undergoing an organizational restructuring to better adapt to mainstream and commercialization needs. The new leadership team brings together senior figures who have long been involved in the development of Ethereum, and is expected to find a balance between infrastructure development and commercial applications. However, issues such as how to measure contribution value and establish a clear development roadmap still need to be addressed.

For Ethereum, the most pressing challenge may not lie in the technical aspect, but rather in whether it can foster groundbreaking super applications. The entire industry needs to work together to support the development of the ecosystem. Profit-making entities such as exchanges could consider allocating a portion of their revenue to support open-source projects. Early-stage venture capital support is crucial for sustaining the innovation ecosystem.

Despite facing numerous challenges, Ethereum, as one of the most successful decentralized organizations in Web3, still has immense potential in the long run. During this uncertain phase, it is especially important to maintain optimism and confidence. In the next decade, today's doubts may become insignificant footnotes. We should adopt a longer-term perspective regarding the future of Ethereum.