Vitalik Buterin, co-founder of Ethereum, the biggest altcoin, has proposed a plan to revamp the ETH blockchain. After months of criticism and allegations faced by the Ethereum Foundation, the 31-year-old entrepreneur has addressed major concerns about the “complexity” of adding new developers to the blockchain platform.
Ethereum (ETH) has a location with a total of $59.88 billion in assets locked in the chain. Layer 2 and Layer 3 Chain Scaling Ethereum addresses user adoption/removal and underlying blockchain scalability issues.
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Buterin plans to simplify the Ethereum blockchain
Vitalik Buterin acknowledged that Ethereum Blockchain has a layer of technical complexity, making it difficult for developers to carry, maintain and develop projects on the chain.
Ethereum Virtual Machine (EVM) is considered the heart of the ETH blockchain, and Buterin believes it can be replaced by a simpler alternative. Buterin’s proposed plan is to simplify the Ethereum blockchain to the Bitcoin range, boosting the adoption of the chain and its native tokens.
In a blog post on May 3rd, Buterin said simplifications can help create new infrastructure in the Ethereum blockchain reduce maintenance costs and improve performance.
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How Ethereum fights Bitcoin in 5 years
In his proposal, Butalin outlined the roadmap to simplify Ethereum and get it as close as possible to the Bitcoin blockchain. Explaining how Bitcoin’s technical architecture is understood by high school students, programmers can write client projects as hobby, buterin says that ETH can evolve.
In a nutshell, Butalin suggested that the Ethereum development team fix the explicit maximum line of long-term code targets. The goal is to simplify Ethes and get it as close to Bitcoin as possible from a consensus standpoint.
Buterin explained some rules about code and developers that are likely to make the process easier and invite more developers to join and build the chain.
Buterin plans to take on Bitcoin for five years as of 2025, but the ETH/BTC ratio has reached its lowest level in over five years. It was in January 2020 that ETH/BTC last visited 0.01766 Low.
This could be the bottom of Ethereum. Since reaching a low point, the ratio has recovered. ETH/BTC trades at 0.02237 at the time of writing.
ETH/BTC Weekly Price Chart | Source: crypto.news
More decentralization of Ethereum
The Ethereum merger was criticized as a move away from decentralization as it shifted consensus mechanisms from proof of work to proof of security. But, unlike the community’s opinion on this, Butaline says that simplification of the Ethereum blockchain is similar to decentralizing it further.
The simplification and decentralization processes are both upstream of the chain of “resilience” and require cultural changes within the project. Buterin admits in his blog that its merits may be unreadable.
With the intention of rebuilding Ethereum from within and boosting competition with Bitcoin, Butaline lists the costs of “extra effort” in a blog post.
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Ethereum price forecast
Ethereum ended its consolidation on May 7th and began meetings. The ETH is 11% away from the $2,550 resistance R1 at the lower limit of FVG. Ethereum faces the next important resistance at the R2, at $2,745.
Ethereum was able to find support at $1,850 at the lower limit of FVG if a crash occurred.
Key technical indicators, RSI and MACD, support further benefits for Ethereum. The RSI slows upwards, reads 80, and the MACD flushes the green histogram bar above the neutral line.
ETH/USDT Daily Price Chart | Source: crypto.news
Ethereum ETF flow and tokenized gold rush
The US-based Spot Ethereum ETF recorded a $16.11 million spill on May 8 against a net Bitcoin inflow. While institutional investors are still wary of pouring capital into Altcoins, Bitcoin has benefited from rising Stablecoin reserves on exchanges and positive daily net flows to spot ETFs.
Ethereum ETF flow | Source: SOSO value
Solana competes with Ethereum for dominance across several metrics across decentralized exchanges, but ETH remains the first choice for real-world asset tokenization.
The tokenization reference is incomplete without BlackRock’s Buidl, a tokenized US financial fund built on the Ethereum blockchain. The fund was launched in early 2024 and currently has over $2.5 billion in assets under management.
At the time of writing, Ethereum accounts for 74% of the US Treasury market, accounting for $6.2 billion. These catalysts contribute to ETH’s recent benefits and potential gatherings at Altcoin in the short to medium term.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.