Ethereum [ETH] Looks Stronger Than Ever Says Vitalik Buterin

ethereum cofounder on social recovery

The Ethereum platform stronger like never before.

This is the assessment of Vitalik Buterin, the co-founder of the world’s first smart contracting platform, as he responded to a question posed by one concerned community member.

He is pessimistic and of the view that the network is “bleeding” and is wondering when it would get back to its old days.

Scaling Solutions on the Pipeline

Currently, Ethereum is in the progress of transiting from a Proof-of-Work consensus algorithm to a Proof-of-Stake arrangement when several improvements will be made.

Chief amongst them will be the implementation of several scaling solutions that would likely cement the network as a dapp leader.

Compared to Bitcoin and the rest, developers are attracted to Ethereum and is consequently the most active from the development perspective.

The Rise of DeFi

This is not surprising because the network is also the most active and a leader in the number of decentralized applications (dapps) and DeFi solutions that continue to be revolutionized finance.

Besides, new users are also gravitating towards Ethereum mainly because of lending and borrowing apps.

Contributing to this influx are intuitive interfaces and proposals on the pipeline to resolve deep-seated impediments aside from user interface troubles.

“Dapp UX has improved so much. Most DeFi apps feel easier than CeFi. The issue with UX for adoption is much deeper. Gas pricing, WETH, confusing addresses, seed phrases and more. The good news is that most of these have solutions coming. EIP-1559, ENS and smart contract wallets.”

According to statistics, there are over $820 million worth of ETH locked up in DeFi applications.

DeFi ETH Locked
DeFi–Amount of ETH Locked

Observers now say this is a net positive for price as the lockup is reducing supply and will subsequently help pump ETH price.

“This is what Bitcoin maximalists don’t want you to know: The Supply for ETH is shrinking, as DeFi apps locking it up are driving demand. There will probably be less ETH available on markets, come next bull run.”

ETH Bulls Retesting a Critical Resistance Level

Ethereum ETH Weekly Chart for Jan 27
Ethereum ETH Weekly Chart for Jan 27 by TradingView

Price-wise, ETH bulls are in command. Although prices remain suppressed, the main trend is bullish in the immediate term.

At the moment, prices are retesting the 20-week moving average.

If bulls overcame this critical resistance level, ETH could easily more than double as price lift-off to June 2019 highs of $365.

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