Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. In the race to build faster, cheaper, and more scalable blockchains, every major altcoin ecosystem has traced back to Ethereum. What began as a single programmable blockchainhas evolved into the base layer of liquidity, infrastructure, and innovation for the broader crypto economy. Two High-profile Chains That Chose Integration Over Isolation
A new compelling argument has emerged, which redefines the future of Layer 1 (L1) blockchains, particularly those compatible with the Ethereum Virtual Machine (EVM). Accordingto the Head of the Ecosystem at Ethereum Foundation, James_gaps, Celo and Ronin have proved why every altcoin’s L1 might eventually become an ETH L1. Related Reading Ethereum Fusaka Upgrade Set To Redefine ETH Performance — Here’s What to Expect 2 weeks ago
Celo has shut down 110 validators and cut security costs by 99.8%, from $6.9 million per year to just $13,200. Meanwhile, Ronin, another significant gaming-focused L1, has paid out $35 millionin staking rewards since 2023 to maintain its L1. Currently, they’re redirecting that capital to developers who actually drive revenue.
Despitethe shift, they remain vibrant and are processing 350,000 daily active addresses across 1000 live games, with transaction activity surpassing even the peak of Axie Infinity’s 2.8 million-user era back in 2022. With the impending Fusaka upgrade, blob capacity is increasing eightfold, further enhancing their scalability.
However, James_gaps explained that the founderof Ronin put it best, and in all EVM L1s are future L2s. When you can outsource security to ETH for pennies on the dollar instead of millions, while still retaining your user base and maintaining sovereignty, the economic rationale for becoming an L2 becomes undeniable. Building The Base For The Next Leg Higher
Ethereum is demonstrating strength in terms of blockchain performance and price. Analyst Luca has notedthat the ETH price has continued to consolidate around the higher timeframe support range marked in green, which previously acted as a strong resistance throughout 2024, capping multiple local tops. The flip from resistance to support now aligns with the Weekly Bull Market Support Band, a zone that has served as a reliable supportover the past few months. Related Reading Here’s What Happens To The Ethereum Price If Bullish Momentum Holds 1 day ago
Luca believes that as long as ETH holds above these levels, the mid-term outlook remains bullish. In the coming days, the key test will become the resistancerange marked in purple on the lower timeframes, which aligns with the golden pocket between the 0.2 and 0.618 Fibonacci Point of interest (POIs). A decisive break above this zone would confirm bullish continuation. Source: Chart from Luca on X
Furthermore, if the price fails to hold the Weekly Bull Market Support Band near the $3,790, and makes a decisive daily close below it, the expert is set to hedge part of my spot holdings to mitigate short-term downside risk. Until that breakdown actually occurs, the mid-term structure will remain bullish. Though the current consolidation appears to be a healthy base before the next move higher. ETH trading at $3,838 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com