Vitalik Buterin Proposed Solution to Solve Ethereum’s Complexity
Ethereum is the second-largest blockchain in the world, with over $59 billion locked in its system.
The network supports thousands of apps and projects, and at its center is the Ethereum Virtual Machine (EVM), which powers smart contracts on the network. However, Vitalik Buterin admitted that the EVM and other system parts have become too complex, making it hard for new developers to build on.
The 31-year-old co-founder wants to change that by simplifying the network, starting with a limit on code size and building more transparent coding rules. He aims to make Ethereum easier to use, cheaper to maintain, and as simple and strong as the Bitcoin network.
Ethereum changed its core system in 2022 by transitioning from Proof-of-Work to Proof-of-Stake, known as “The Merge.”
Some critics say this move made Ethereum less decentralized, but Buterin disagrees. He believes simplifying Ethereum’s architecture will make it more decentralized by reducing developers’ barriers to entry.
He admitted that these changes will take time and effort. Buterin also points out that cultural change within the Ethereum Foundation is needed to make this transformation possible.
ETH/BTC Ratio Rebounds After 5-Year Low
Ethereum’s value against Bitcoin recently dropped to its lowest point in more than five years. The ETH/BTC ratio hit 0.01766, a level last seen in January 2020. However, it has started to recover and is now at 0.02237.
Ethereum’s price also began rising on May 7. According to market data, it is now 11% below its first key resistance level at $2,550, with the next target at $2,745. If the price drops, Ethereum could find support at $1,850.
On the bright side, technical indicators like RSI and MACD suggest that Ethereum could continue to grow in the short term.
Institutions Still Prefer Bitcoin, But Ethereum Has Real-World Use
Despite Ethereum’s market gains, U.S. spot Ethereum exchange-traded funds (ETFs) saw massive outflows. Meanwhile, Bitcoin investment products recorded net inflows, reflecting stronger investor confidence.
While Bitcoin is seeing widespread adoption and massive market growth, Ethereum continues to dominate in real-world applications. In 2024, world-leading asset manager BlackRock launched a tokenized U.S. Treasury fund called BUIDL on the Ethereum network. The company recently expanded the tokenized funds to the Solana network.
This fund has seen massive success, holding more than $2.5 billion. Remarkably, Ethereum currently supports 74% of all tokenized U.S. Treasuries, with a total of $6.2 billion in this market alone.
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