In the race to build faster, cheaper, and more scalable blockchains, all major altcoin ecosystems trace back to Ethereum. What started as a single programmable blockchain has evolved into a base layer of liquidity, infrastructure, and innovation for the broader crypto economy.
Two famous chains chose integration over isolation
A new and compelling argument has emerged to redefine the future of Layer 1 (L1) blockchains, especially those compatible with Ethereum Virtual Machine (EVM). According to Ethereum Foundation’s Head of Ecosystem, James_gaps, Celo, and Ronin proved why the L1 of all altcoins will eventually become the ETH L1.
Celo shut down 110 validators, reducing security costs by 99.8% from $6.9 million to just $13,200 annually. Meanwhile, another important game-focused L1, Ronin, paid $35 million From 2023 onwards, we are staking our rewards to maintain L1. Now they are directing that money to developers who actually generate revenue.
in spite of Post-migration, they have remained vibrant, processing 350,000 active addresses daily across 1,000 live games, and transaction activity has even surpassed Axie Infinity’s 2.8 million user-era peak in 2022. face upgradeBLOB capacity has been increased by 8x, further enhancing scalability.
However, as James_gaps explained: founder Ronin said it best: In all EVMs, L1 is the future L2. If you can outsource your security to ETH for pennies rather than millions while maintaining your user base and sovereignty, the economic rationale for becoming L2 is undeniable.
Laying the foundation for greater heights
Ethereum is showing strength in terms of blockchain performance and price. Analyst Luca said, noticed We see that ETH price has consolidated around the higher timeframe support range marked in green, which previously acted as strong resistance throughout 2024 and capped off multiple local tops. The reversal from resistance to support coincides with the weekly bull market support band, which is currently acting as a reliable zone. support For the past few months.
Luca believes that as long as ETH remains above these levels, the medium-term outlook remains bullish. Important tests will take place in the coming days. resistance The range marked in purple on the bottom timeframe coincides with the golden pocket between the 0.2 and 0.618 Fibonacci Points of Interest (POI). A decisive break above this zone will confirm the continuation of the bullish trend.
Additionally, if the price fails to hold the weekly bull market support band around $3,790 and takes a definitive daily close below it, the expert plans to hedge some of my spot holdings to reduce short-term downside risk. Until that collapse actually occurs, the medium-term structure will remain bullish. However, the current share price rally appears to provide a healthy foundation for the next rally.
Featured image from Getty Images, chart from Tradingview.com
