Ethereum co-founder Vitalic Buterinesuggested a solution to the scalability issues and transaction fees at Tier-2 to provide temporary relief before sharding. It’s also signaled that new updates can be put together and added to the Shanghai hard fork.
Aggregations or Tier-2 chains, Ethereum networkIt will take over the security, decentralization and liquidity of the company. Early-stage aggregations such as Optimism, Arbitrum and StartNet could become even more optimized in 2022. Buterin proposed a “blob-bearing transactions” system that would reduce transaction fees by five times or more by the end of 2022.
Ethereum (ETH) may remain expensive among Tier-1 solutions, but higher scalability and zero-knowledge (ZK) aggregations could make it offer the cheapest fees to its users. In the end, users can only use ZK aggregations instead of interacting directly with the Ethereum network.
Some proposals to add “blob-carrying transactions” in a near-future hard fork, bringing higher scalability to rollups before full sharding is complete. https://t.co/oRTSwAC1oD
— vitalik.eth (@VitalikButerin) February 5, 2022
Lower transaction costs and higher scalability in the network are expected to increase the investor outlook in Ethereum. CoinShare, a capital markets firm, recently started conducting a bimonthly survey of digital asset fund managers. Survey results revealed that investor sentiment has improved for Bitcoin and Ethereum.
The report reveals the fundamental correlation between investor sentiment and allocation of digital assets. Compared to altcoins Polkadot, Cardano and Solana, relatively larger allocations accompany a better outlook on Ethereum.
Important notes from the report are as follows:
“Allocations/allocations to digital assets, bigger bucks at the expense of altcoins [Bitcoin, Ethereum] It reflected the growth outlook for digital assets, where allowances were minimally increased for
analysts, Ethereum (ETH) evaluated the price trend and noted that the altcoin is on a bullish or breaking point.
@AltcoinSherpa believes a return to lows is likely on Ethereum; However, the price retained its bullish market structure on the 4-hour weekly chart, it is near the $3,000 making or breaking point.
$ETH: This isn’t generally how bottoms are formed; I think a return to the lows is likely (eventually). With that said, price has still maintained a bullish market structure on the 4h w. HHs/HLs. Approaching a scary area in the 3000s, be careful. #Ethereum $ETHUSD pic.twitter.com/9KoAwUnsM2
— Altcoin Sherpa (@AltcoinSherpa) February 4, 2022
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.