From Hong Kong to Denver: Ethereum's "Dunkirk Moment"

After the Consensus Hong Kong conference, the industry is generally pessimistic about the industry's prospects, believing that it has entered a bear market. During the conference, short-term traders and opinion leaders became the focus, and their trading strategies and views sparked heated discussions. In stark contrast is the sluggish state of the Ethereum ecosystem, which lacks vitality and innovation. Many long-term holders are starting to be bearish on Ethereum, turning to other public chains. This reflects the challenges faced by the Ethereum ecosystem, including insufficient developer enthusiasm and low communication efficiency.

In the current market environment, short-termism is prevalent, with many participants abandoning long-term ideals in favor of short-term arbitrage. Some trading platforms lower listing standards to support their own projects; certain well-known projects view token issuance as an opportunity for profit-taking; and market makers leverage relationships and brand advantages to obtain considerable returns. This shortsighted behavior is profoundly affecting entrepreneurs who are committed to building.

At the Ethereum developer conference in Denver, the founders of infrastructure projects are generally pessimistic, while those in the application layer and artificial intelligence sectors remain optimistic. Many projects that have long focused on the Ethereum ecosystem are facing a funding drought and are forced to rethink their product strategies and development directions. Some technically advanced founders are beginning to feel weary of pure technology research and development, shifting their focus to emerging fields like artificial intelligence, which could lead to a stagnation in the development of Ethereum infrastructure.

However, the integration of artificial intelligence with Web3 has also brought new opportunities. Several innovative projects combining AI and Web3 have debuted in Denver, showcasing the innovative vitality of the industry. Capital and entrepreneurs are actively positioning themselves in this emerging field, such as Paradigm investing in the Web3 LLM company Nous Research, and the progress of companies like Groq and Openmind in inference and open-source intelligence platforms.

In terms of the macro environment, the regulatory attitude in the United States is becoming more positive, and the banking industry is starting to accept crypto assets, which will bring more liquidity to the industry. In the next two years, traditional companies and even governments may participate more in Layer 2 networks, promoting the growth of the Ethereum ecosystem.

The Ethereum Foundation is undergoing an organizational restructuring aimed at promoting Ethereum towards mainstream applications and commercialization. The new co-executive director has extensive experience in Ethereum development and business insights, and is expected to find a balance between technological innovation and commercialization.

Despite the challenges, Ethereum remains the cornerstone of Web3. Currently, innovation at the application level may be more important than technological breakthroughs. Industry participants should jointly support the development of the Ethereum ecosystem, including funding support and talent cultivation. Although there may be fluctuations in the short term, in the long run, Ethereum is expected to maintain its leading position in the next decade.

In this challenging time, it is crucial to maintain optimism and confidence. The future of the Ethereum ecosystem depends on the collective efforts and innovative spirit of all participants.