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'Ethereum's Future Is Bright': Vitalik Buterin Tackles Price and Layer-2 Frustrations
Ethereum co-founder Vitalik Buterin laid out his latest thoughts on the blockchain’s future Friday, addressing head-on an issue that he rarely discusses: Concerns about ETH’s price, and the role of layer-2 scaling networks in depressing the asset’s financial health.
Layer-2 networks, built atop of Ethereum’s mainnet, now dominate the blockchain thanks to the miniscule gas fees and speedy transaction times they offer. But analysts have predicted that the proliferation of L2s could cost Ethereum trillions of dollars over the next few years, given how they muck up ETH’s token-burning roadmaps—and thus, the asset’s intended deflationary trajectory.
Indeed, as other cryptocurrencies have soared in recent months, ETH has remained defiantly stagnant—prompting a popular meme on Crypto Twitter.
On Friday, Buterin, who often appears more focused with niche technical matters than macro political and market dynamics, acknowledged the problems currently posed by L2s related to economics, as well as safety and interoperability.
“One possible shortcut for scaling is to give up on L2s, and do everything through L1 with a much higher gas limit,” the crypto developer wrote in a blog post. “However, this approach compromises too much of the benefits of Ethereum's current social structure.” Read More
Too many tokens? Analysts argue oversupply could end altcoin season
With 36.4 million tokens flooding the market, analysts question whether altcoin seasons are a thing of the past.
Cryptocurrency analysts and traders are debating whether an altcoin season — a period when alternative cryptocurrencies outperform Bitcoin in the market — is over.
Historically, altcoin seasons have been marked by significant price rallies for non-Bitcoin cryptocurrencies.
In the 2017-2018 cycle, the altcoin market experienced its most explosive growth, with coins like Ether, XRP and Litecoin posting record-breaking gains.
Crypto analyst Ali Martinez argues that the sheer number of altcoins now makes the possibility of a sustained altseason unlikely.
“Today, there are over 36.4 million altcoins, compared to fewer than 3,000 during the 2017-2018 alt season and even fewer than 500 altcoins in 2013-2014,” Martinez posted on X, citing data from Dune Analytics. “With such massive supply, the market has changed significantly.” Read More
Elon Musk's DOGE Exploring Blockchain for Government Efficiency: Bloomberg
The Department of Government Efficiency, the cost-cutting initiative led by billionaire Elon Musk, is reportedly considering the use of a public blockchain to bring transparency and other potential benefits to government operations and spending.
That's according to Bloomberg, which reported Saturday that Musk's DOGE agency is holding conversations with representatives from multiple existing public blockchains, according to sources close to the conversations.
No specific chains are mentioned in the report, though Bloomberg reports that DOGE is keen on using a blockchain—an immutable, public ledger—to monitor government spending and handle payments, handle data, and perhaps even "manage buildings" under the U.S. government's purview.
DOGE—which appears to share its acronym with the ticker of Musk's favorite cryptocurrency, Dogecoin—was discussed on President Donald Trump's campaign trail and then made official following his November election win. Musk was supposed to co-run the effort with Vivek Ramaswamy, but the latter billionaire and Bitcoin fan departed this week for an apparent run at Ohio governor. Read More
What is finality in blockchain, and why does it matter?
Finality in blockchain means reaching a point where a transaction is permanent and irreversible. Once a transaction achieves finality, it’s locked in and cannot be altered or undone. This is crucial in maintaining trust in blockchain systems, as it guarantees that transactions are secure and records remain immutable.
Think of blockchain finality like wet cement. When you first pour cement, you can still make changes — move it, shape it, or even erase a footprint. But once it hardens, it’s set in stone, and no one can alter it. Similarly, a blockchain transaction starts as “wet cement” during the confirmation process. Once the network reaches consensus and finality is achieved, that transaction is “hardened,” becoming permanent and unchangeable.
There are two key types of finality: transaction finality and state finality. Transaction finality refers to the point when a specific transaction is confirmed and cannot be reversed. For example, on Bitcoin, a transaction is generally considered final after six confirmations — i.e., six new blocks added to the chain.
State finality, on the other hand, focuses on the entire blockchain state, ensuring that every part of the system reflects an agreed-upon status, which is vital for smart contracts and decentralized applications (DApps). Read More
Virtuals expands to Solana ecosystem, establishes strategic SOL reserve
AI agent platform Virtuals Protocol has announced it will expand into the Solana ecosystem, and industry participants are saying the integration will have more impact than “most people realize.”
Virtuals Protocol (VIRTUALS), already on the Ethereum layer-2 network Base, said in a Jan. 25 X post that its expansion to the Solana layer-1 blockchain is part of its efforts to “drive innovation across multiple ecosystems.”
1% of trading fees to be converted into SOL for strategic reserve:
Being on both the Solana and Base chains could help grow ecosystem participation, attract developers and users from Solana, and increase scalability while easing network congestion.
“Solana, known for its speed, scalability, and vibrant community, is the perfect place for us to grow and bring our vision to life,” Virtuals Protocol said.
Virtuals will introduce several new features on the Solana network, including a Strategic Solana reserve, where 1% of trading fees will be converted to SOL to build a reserve to “support and reward agents” and creators within the ecosystem. Read More
The Significance Of Markethive Amidst The Crypto Renaissance
A profound economic transformation is on the horizon, driven by the transformative power of cryptocurrency and the decentralized technologies of Web 3. This seismic shift will be remembered as a pivotal moment in human history, rivaling the transformative impact of the original Renaissance. In the 15th century, groundbreaking innovations like ledgers and the printing press sparked the Renaissance and forever altered the course of global development. Similarly, the crypto renaissance is set to bring about positive changes in the global economy, offering a sense of optimism and reassurance.
This article highlights the correlation between the historical Renaissance, where populations were essentially freed from a life of serfdom, and the pervading crypto renaissance we see unfolding today. We also discuss the importance of Markethive’s position and how it aligns with this economic resurgence. Markethive, a decentralized platform, plays a crucial role in this revolution, enabling autonomy, financial sovereignty, and wealth distribution in a dynamic crypto-enabled ecosystem. It marks the creation of a renaissance within Markethive, positioning it as a key player in the crypto renaissance.
In medieval times, access to education was primarily reserved for the upper echelons of society. Fewer than one in twenty individuals received any kind of formal instruction, which frequently excluded basic literacy skills. However, the Renaissance era ushered in two groundbreaking technological advancements that would have a lasting impact on human history: the development of ledgers and the invention of the Gutenberg printing press. Read More
DeFi Network Thorchain Faces $200 Million in Toxic Debt—Here's What's Going On
The decentralized, cross-chain liquidity protocol Thorchain paused its savers and lending programs Thursday, preventing ThorFi users from being able to withdraw Bitcoin, Ethereum, and other crypto assets from the embattled services.
Roughly $111 million worth of digital assets has been borrowed through Thorchain’s protocol, and $98 million worth of crypto is currently locked in savers vaults. That amount from depositors includes $57 million worth of Bitcoin and $16 million worth of Ethereum, per a Thorchain dashboard.
The problem is, anyone who currently has money in ThorFi can’t get it out, as the network faces a $200 million insolvency. Thorchain network operators have frozen these funds in an attempt to prevent a disaster scenario for the DeFi protocol. Dragonfly Capital managing partner likened the move to a “bankruptcy freeze,” calling it the “first on-chain restructuring.”
The decision was established “via nodes,” according to Thorchain founder JP Thorbjornsen, who said on X that the move gave Thorchain’s community 90 days to come up with a restructuring plan, while instructing “everyone [to] chill.” Read More
DePIN needs a more cohesive narrative for mass adoption — Web3 exec
Decentralized physical infrastructure networks (DePIN) must overcome the lack of a cohesive narrative to reach mass adoption, Movement Labs co-founder Rushi Manche told Cointelegraph in an interview.
The Web3 executive said DePIN has so many diverse use cases, many of which are highly technical, that it is often difficult to pitch projects to the general public or achieve product-market fit.
Despite this, the sector’s future remains bright, Manche said, citing US President Donald Trump’s pro-crypto policies as a reason for optimism.
“Tokens being issued in the United States would be a huge thing, and I think Trump was talking about it in the last few weeks,” Manche told Cointelegraph.
DePIN is one of the crypto sectors that venture capitalists are eyeing in 2025 as anticipated regulatory clarity on digital assets comes to the United States and previous restrictions are lifted. Read More
President Trump Signs Executive Order To ‘Evaluate’ Strategic Bitcoin and Crypto Reserve, Ban Central Bank Digital Currency, Boost Stablecoins
President Trump just signed an executive order to evaluate the creation of a strategic national Bitcoin and crypto stockpile, as well as prevent the development of a Central Bank Digital Currency (CBDC) while boosting stablecoin adoption.
The order, entitled “Strengthening American Leadership in Digital Financial Technology,” states the administration supports the “responsible growth” and use of digital assets and blockchain technology.
The order revokes President Biden’s previous digital asset directives and creates a new working group that will coordinate and propose a unified regulatory approach to digital assets within 180 days.
“The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”
The executive order also demands all federal agencies halt any actions related to the development of a government-backed digital version of the dollar, while analyzing how the US can “promote the development and growth of lawful and legitimate” dollar-pegged stablecoins created in the private sector. Read More
Is the scrapping of SAB 121 a poisoned chalice for Bitcoin?
Community members argued that encouraging banks to hold other people’s Bitcoin strays from the original vision of its creator, Satoshi Nakamoto.
The US Securities and Exchange Commission rescinded Staff Accounting Bullet 121 (SAB 121), which had asked financial firms holding crypto to record it as a liability on their balance sheets, reigniting debates over Bitcoin custody within the crypto community.
On Jan. 23, the SEC rescinded controversial crypto accounting rule SAB 121. It had faced widespread criticism from the crypto industry, which argued it created barriers for institutions seeking to custody digital assets.
While some viewed the development as a win, others said that encouraging banks to hold other people’s Bitcoin strayed from the original vision of its creator, Satoshi Nakamoto. Read More
Vitalik outlines strategy for scaling Ethereum and strengthening ETH
Ethereum co-founder Vitalik Buterin outlined a multi-pronged strategy to scale the Ethereum ecosystem by fostering growth in layer-2 (L2) solutions, advancing blob scaling and reinforcing Ether’s role as the ecosystem’s primary economic driver.
In a blog post, Buterin suggested that Ether should be cemented “as the primary asset of the greater (L1 + L2) Ethereum economy,” and that L2 networks should be encouraged to support ETH with a percentage of fees. He also called for raising the blob count, a technical enhancement that increases transaction capacity.
While L2 networks have achieved significant milestones in improving transaction fees and scaling capacities, Buterin backed faster adoption of these solutions and greater interoperability among L2s.
He argued that Ethereum’s future sustainability depends on this approach, which ties together ecosystem growth, technical standard upgrades and ETH’s role as the primary economic driver. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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