Solana and other public chains have made concerted efforts, but why can’t they shake Ethereum’s position?

Recently, Solana has led the rise of a number of Layer 1 public chains such as Avalanche and NEAR, and there are voices in the market challenging Ethereum. Indeed, at a time when EVM dominates the world and Layer 2 has not yet emerged, narratives such as MEME and DePin alone are not enough to shake ETH’s market position. This is just a short carnival of Alt-Layer1 before the Cancun upgrade. Why?

1) The narrative of major public chains competing to “kill Ethereum” has proven to be a “failure” in a bull-bear cycle. On the surface, this stems from the strong market consensus of Ethereum, the innovation of the developer community, and the magic of infinite combinations of DeFi and NFT financial applications.

In fact, as the crypto market is still limited by factors such as technology, market, and compliance, Mass Adoption has not been widely adopted. The technological "leap" brought by these new public chains has not yet become a new narrative and expanded new market increments. The starting point is still just to eat the dividends from Ethereum overflow.

Public chains such as Solana, Avalanche and Aptos hope to comprehensively improve their technical level from the perspective of development language, code complexity, operating mechanism and other underlying frameworks to provide better infrastructure for the application market. For example, Solana’s technical advantages in high concurrent processing performance and user experience are indeed more suitable for future growth in the encryption market.

However, the basic operating logic of the market has not really changed.

Hot money for risk, market audiences eager for wealth, constantly refreshing diversified gameplay, ever-present information gaps, and occasional legends of getting rich, etc., these perfectly constitute the basic elements of a cyclical bull market.

This leaves Ethereum with "inherent limitations" in technology. It relies on various EIPs, ERC standard protocols, etc. for patch repairs, which is enough to generate a huge application market, and can also make other competitors' public chains successful through spillover effects. Lead frequently.

But everyone is reaping the dividends of the Ethereum DeFi market, and the time for Alt-Layer1 to easily replace and surpass Ethereum has not yet come.

2) Ethereum’s “inherent flaws” have developed a set of mature solutions. For example, the scaling problem has evolved into multiple solutions such as Rollup, Plasma, and Validium;Another example is the limitation of EOA addresses, which has also been solved by relying on ERC4337 Account Abstraction upgrade, and has even evolved into an account abstraction track;

In addition, Layer 2 has also become a narrative track, with OP-Rollup and ZK-Rollup participating in the ongoing tug-of-war; in the future, Cancun's upgraded Blob space and further Sharding sharding, underlying SNARKization, etc. will provide follow-up development support;

Even with the potential limitations of block capacity caps, DA capabilities have been expanded due to the introduction of heavy-weight solutions such as Eigenlayer, and then optimized through modular combinations of third-party DA solutions such as Celestia and optional replacement of VM execution layers. .

The development, expansion and extension environment of the entire Ethereum is mature enough and prosperous. The developer power behind it is the cornerstone for Big Ether to gain a firm foothold.

Although the results of Ethereum's continuous ecosystem building over the past few years are indeed not as good as expected, it has been able to complete the key upgrade from POW to POS amid frequent hacker attacks, can gather developer resources on the central main line of Ethereum's EVM, and can Developing into a more ambitious Layer 2 narrative sector, Ethereum’s follow-up potential cannot be underestimated.

Trust in Ethereum is a respect for its solid consensus over the years, as well as respect for the huge Builder development team behind it.

I vaguely remember that at the end of 2018, EOS was hailed as a new paradigm public chain and set off a spinach game craze. However, everyone saw the results. After a short period of prosperity, the one who finally had the last laugh was the slow but steady development of Ethereum.

Real value discovery must be grasped slowly.

3) The construction speed of Layer 2 is indeed slower in the bear market, especially without the market gifts of Layer 2 in the summer, making everyone involved in the construction of the Layer 2 ecosystem feel a little unwilling.

However, the slow build of Layer 2 is similar to Ethereum’s DeFi narrative spilling over to major new public chains to establish a new narrative. The second half of Ethereum Layer 2 will be driven by some high-frequency transactions and applications. Simply relying on the spillover effects and path dependence of Ethereum’s financial gameplay will have no advantage in a head-on confrontation with Alt-Layer1.

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