Continuous Altcoin falls…”I’ve reached the limit of Ethereum technology”
As Ethereum 2.0 integration (PoS conversion) continues to be delayed due to algorithm changes and remittance problems between data, related alt coins such as decentralization (Depy) and irreplaceable tokens (NFT) are suffering from a series of declines. In this regard, blockchain experts say that Ethereum’s biggest invention, Smart Contract, is showing technical limitations. Coin prices are expected to rise only when they exceed technical limitations.
According to the blockchain industry on the 30th, various Altcoin based on Ethereum’s smart contracts such as Defi and NFT are on the decline. It is believed to be due to Ethereum’s PoS conversion problem. The industry analyzes that the existing Ethereum mainnet and the new mainnet Beacon chain should be integrated into 2.0, but in this process, the problem of remittance between data is not solved. Ethereum has been doing a hard fork (creating a separate chain from the existing chain) for the purpose of converting PoS since 2019, but it has not yet achieved mainnet integration after three years.
Even when Bitcoin fell earlier this year, Ethereum succeeded in defending its price by announcing the integration of Mainnet 2.0. However, it has not recovered since the “Luna-Tera” incident broke out in May. Recognizing this, investors are selling Ethereum and smart contract-based Altcoin. An official from the blockchain industry said, “There are also rumors that it is due to market price manipulation such as operations, but overall, Ethereum-based coins are now unable to keep up with industry technology demands and trends.”
It is estimated that there are more than 20,000 types of altcoins that have been released so far. More than 90% of them are based on smart contracts. The game industry also says that Ethereum’s smart contract is technically easier within platforms such as games and D-Fi than Bitcoin. In addition, NFT and Web 3.0, as well as stable coins such as Circle (USDC) and Tether (USDC) are using smart contract technology, and there is no alternative.
In the end, the industry’s view is that Ethereum technology has also reached its limit. On the previous day, the Ethereum Foundation conducted a “Grey Glacier” hard fork the previous day. However, even this is seen by blockchain technicians as a defense against Mainnet 2.0 delay. Choi Yoon-il, chief technology officer (CTO) of Mu: On-Off (blockchain project), said, “The delay in Ethereum 2.0 eventually shows that the upgrade is opaque,” adding, “The situation seems to have gotten worse considering the size of a hard fork.”
In the meantime, Altcoin has attracted investors by bringing profits with large leverage. However, ants are also leaving due to the continued decline. In fact, the Ethereum-based Altcoin list is being shared at Bitman, a cryptocurrency investment cafe. Now, it is interpreted that it will minimize investment damage by identifying in advance what Ethereum-based coins are.
On the other hand, some view the decline in cryptocurrency as a temporary phenomenon depending on the global economic situation. “Bitcoins temporarily rebounded due to strong buying in the virtual currency market,” said Katie Stockton, founder of virtual currency market research firm Fairlead Strategies. “Bitcoins will fall as the Federal Reserve (Federal Reserve) predicted an aggressive rate hike.” It is not a technical problem, but the central banks of each country, including the Fed, mentioned interest rate hikes, which greatly dampened investor sentiment in cryptocurrencies.
In this regard, Choi Hwa-in, a blockchain Evangelist, advises, “Virtual currency has also come to an inflection point,” adding, “Block change should quickly enter the end of the technology and become popular.” This means that it should become a key element like semiconductors and compete only in pure technology.
Meanwhile, according to CoinMarketCap, a cryptocurrency market price site, the total coin market capitalization is trading at $890 billion on the same day, and Altcoin’s market capitalization, excluding Bitcoin, remains in the $500 billion range. Compared to a month ago, the total market capitalization was more than 2 trillion won and the alt-coin market was less than half. On the same day, Ethereum’s market capitalization was about $132.6 billion, down 45 percent from a month ago. The coin price is also trading at $1,092.94, down 5.25% from the previous day. 토토사이트