- Ethereum is facing low crypto money flow.
- Buterin’s influence helped ETH regain its dominance.
Recent analysis has revealed a shift in the market: Solana has overtaken Ethereum (ETH) in terms of crypto money flow.
Global liquidity skyrocketed as Bitcoin (BTC) and Solana led the cryptocurrency space, taking the top two spots, followed by Binance Coin in third and Ethereum in fourth.
This development raises the question of whether Ethereum can regain its usual second place and turn things around.
Source: TradingView
Technical Analysis of ETH/USDT
Currently, Ethereum price action is showing a downward trend on the hourly time frame. ETH, like many other cryptocurrencies, experienced a decline on August 28th.
Nevertheless, Coinbase buyers have been buying aggressively at lower levels, putting ETH/USDT in an ideal reversal zone. The question now is whether Ethereum can recover and push its price higher.
Source: TradingView
Buterin’s influence on ETH
Vitalik Buterin has continued to actively promote Ethereum despite its recent difficulties. Buterin on X reiterated that Ethereum remains a strong force in the cryptocurrency industry, stating:
“I have spoken to many L2s and there is a great desire to work together to improve interoperability across the Ethereum ecosystem. I would also like to add that Ethereum L1 is becoming more and more robust. Over the last year, we have seen that fears of censorship and centralization have not materialized – quite the opposite.”
Buterin also addressed the misconception that Proof-of-Work (PoW) is the gold standard for digital assets, arguing that this narrative is losing traction.
He highlighted the ongoing development of the Ethereum roadmap, focusing in particular on the part of block construction that affects ETH staking.
Source: Dune
The progress in this area, especially with the FOCIL and BRAID solutions, is promising for the future of Ethereum.
In addition, Buterin pointed out that the growing success of smart contract wallets and the robustness of L1 are very optimistic signs for Ethereum’s long-term prospects.
ETH mobile operating system
As a further sign of his support for Ethereum’s growth, Buterin recently transferred 200 ETH, worth about $517,000, into a multi-signature contract, believed to be a donation to the ethOS (Ethereum Phone) project.
This project aims to develop the world’s first mobile Ethereum operating system and demonstrate ongoing innovation within the Ethereum ecosystem.
Source: Arkham
While much of the recent development has focused on Layer 2 (L2) solutions, this advancement is nevertheless a win-win for Ethereum and its L2s.
Read Ethereum (ETH) price prediction 2024-25
Speculation Index says…
Finally, the speculation index, which measures the percentage of altcoins with a 90-day return above Bitcoin, is at its lowest level since August 2023.
Historically, low readings of this index have preceded significant investment opportunities in altcoins. This suggests that ETH could be on the verge of a trend reversal, which could potentially drive its price higher in the coming months.
Source: Capriole Investments
