$ETH As the 'second flagship' of cryptocurrency, Ethereum has been continuously innovating and expanding, almost everyone knows it, and almost no one is unaware of it. It is regarded as the 'cornerstone' of smart contracts and decentralized applications (dApps), with countless 'decentralized finance' (DeFi) projects and NFT artworks relying on its blockchain. However, recently, the 'magic' of Ethereum seems to be fading. Yes, the questions are coming.

1. Ethereum 2.0 Upgrade: Is it a blessing or a nightmare?

Since Ethereum went live in 2015, it has been destined to face some significant challenges, especially scalability issues. As you know, the processing speed of on-chain transactions per second is limited—this causes Ethereum to become congested when a large number of transactions flood in, leading to high fees.

To address this issue, Ethereum 2.0 (the full transition to PoS mode) began in 2019 with the aim of reducing energy consumption and improving network processing capacity. However, the upgrade process has not been as smooth as expected. Although the transition from PoW (Proof of Work) to PoS (Proof of Stake) has started, the full implementation of Ethereum 2.0 is still in progress, and many uncertainties are causing anxiety—these issues remain a huge burden for most DApps and exchanges.

The implementation details of Ethereum 2.0 have not been fully clarified for a long time, leading many to question its actual effectiveness. After all, every innovation in the blockchain world comes with extremely high risks. More importantly, the shift to a PoS system does not fundamentally solve the problem of network congestion. The network relies not only on technical improvements but also on the frenzied growth of market demand.

2. High Transaction Fees: Who can afford this 'tuition'?

Speaking of another problem with Ethereum, that is transaction fees. Although Ethereum's 'Gas fees' experienced a drop last year, they still occasionally reach outrageous levels. Especially when market sentiment fluctuates, transaction fees become a 'threshold' for many users, particularly retail investors trying to make small trades. You might think that a few dollars in fees are negligible, but for newcomers, it could be a 'fatal injury.'

Worse still, with the advancement of Ethereum 2.0, the network's load has not been fundamentally resolved. Even with the implementation of sharding technology, it still cannot avoid the increasingly severe fee issues. This poses a threat to Ethereum's long-term competitiveness, as other public chains like Solana and Avalanche gradually erode Ethereum's market share through low fees and high throughput.

3. Competitive Pressure: Can Ethereum maintain its 'king' status?

In recent years, although Ethereum's position as a smart contract platform is solid, the competitive pressure it faces is also increasing. Public chain projects like Solana, Binance Smart Chain, and Cardano, with lower transaction costs and faster transaction confirmation speeds, have started to divert Ethereum's developers and users.

These competitors, although still steadily developing, are attracting developers and investors at a relatively rapid pace. While Ethereum has unparalleled advantages in user base, developer resources, and the NFT field, whether these advantages can be sustained remains a big question mark.

4. The Decentralization Process of Ethereum: Challenges and Compromises

Decentralization is one of the core philosophies of Ethereum, but in reality, as the network grows and complexities increase, finding a balance between decentralization and efficient operation remains a thought-provoking issue.

The concentration of mining pools in the Ethereum network is still relatively high, and the reliance on large mining pools continues to challenge its decentralization. Although the Ethereum community has been pushing for decentralization efforts, the contradiction between the ideals of decentralization and the reality, faced with enormous economic incentives, may put Ethereum in a dilemma.

Conclusion:

Overall, Ethereum has indeed taken the lead in technological innovation, ecosystem construction, and market leadership. However, with increasing competition, growing network issues, and the challenges of technological upgrades, whether it can maintain its 'king' status remains highly uncertain. For ordinary investors, this means: when the market changes, don't fixate solely on Ethereum; remember, no one can guarantee that it will always navigate through all the fog.

After all, the blockchain world is not lacking in innovators, but those who can truly go the distance are often the players who can solve fundamental problems.