Mike Novogratz’s crypto financial institution Galaxy Digital says 2024 shall be a vital 12 months for Ethereum, as different layer-1 blockchains will elevate the stakes.
Ethereum seems to be navigating uncharted waters, because the community is about to face “unprecedented challenges” in 2024 introduced by different layer-1 networks corresponding to Solana, Galaxy Digital writes in its “Watch This House” report.
Whereas the report highlights Ethereum’s dedication to supporting layer-2 networks and integrating applied sciences corresponding to restaking, it acknowledges the emergence of different networks like Celestia, which promise an “unprecedented quantity of flexibility” in catering to numerous person wants associated to privateness, value, safety, and compliance.
“It will likely be necessary to look at heightened competitors and differentiation between Solana and different modular blockchains like Ethereum and Celestia in 2024.”
Galaxy Digital
Galaxy Digital analysts observe that Ethereum’s modular structure, notably numerous rollup varieties, will introduce new challenges and technological dangers attributable to their early stage of growth. Singling out Solana as essentially the most distinctive general-purpose blockchain embracing a monolithic structure, they place it as the first competitor towards Ethereum.
The Ethereum blockchain makes use of validators to safe its community, however there’s a restrict to what number of validators can be a part of or depart the community in every time interval, referred to as an epoch. As Ethereum has grown, the restrict for validator entries and exits has additionally elevated. Wanting forward, Galaxy says Ethereum builders might have to “weigh drastic adjustments” to staking dynamics and financial coverage in 2024 if the community experiences a surge in utilization, leading to elevated transactions and staking demand.