Compiled by: Plain Blockchain
Ethereum holders are no strangers to extreme market volatility. But this cycle? It feels like a rollercoaster that keeps going down.
While Bitcoin hits new highs, Ethereum has barely moved, even continuing to bleed. No new compelling narratives. No explosive growth. Just a slow erosion of market dominance as faster, cheaper competitors like Solana steal the spotlight. Now, Vitalik Buterin has proposed a radical new plan that could change the way Ethereum operates forever. But is it already too late?
Vitalik's new bet: replacing EVM.
At the core of Ethereum is the Ethereum Virtual Machine (EVM)—the decentralized engine that powers smart contracts on the network. It has been a cornerstone since Ethereum's inception. But now, Vitalik suggests a complete overhaul.
In a post on the Ethereum Magicians forum (a gathering place for Ethereum developers), Vitalik proposed the idea of replacing the EVM with a new architecture called RSIV.
In simple terms:
Existing contracts maintain functionality.
New contracts can be written in Rust (a modern, popular programming language) as well as Solidity.
Interoperability will be maintained between old and new systems.
The goal? Significantly improve Ethereum's execution efficiency and address one of its biggest scalability bottlenecks.
Vitalik even hinted that this might be the only viable path to simplify Ethereum's bloated execution layer—especially after abandoning earlier sharding commitments.
In theory, this sounds transformational.
In reality? RSIV may take years to come to fruition.
That is the real question.
Ethereum stagnates, SOL rises.
While Ethereum discusses its next major upgrade, competitors are not standing still.
Especially SOL, which is far ahead:
Processed 4.9 billion transactions in the past three months, far exceeding Ethereum.
Weekly network revenue reached $21 billion, capturing nearly 48% of market share.
SOL's decentralized exchange (DEX) trading volume now leads all chains.
Meanwhile, Ethereum's data does not paint an optimistic picture:
The ETH/BTC ratio has hit an all-time low.
ETH ETFs continue to see asset outflows, while Bitcoin ETFs attract billions of dollars.
Ethereum's market dominance has fallen to 7%, about 66% lower than historical levels.
Price performance? Over the past year, Bitcoin has risen nearly 50%, while Ethereum has dropped 50%.
The choice on Wall Street is clear. The hottest funds in the crypto market are no longer flowing to Ethereum but are turning to Bitcoin and faster Layer 1 chains like SOL.
Even big players like Galaxy Digital are reshuffling: On-chain data shows they have exchanged $100 million worth of ETH for SOL.
The brutal truth: Ethereum is losing its momentum.
The current state of Ethereum sounds eerily similar to the former tech giant Nokia.
Just like Nokia in the smartphone wars, Ethereum built an outstanding platform that changed the world... but it struggled to adapt quickly when newer, faster competitors emerged.
The harsh reality is: Ethereum has lost its narrative in this cycle.
In 2017, Ethereum was synonymous with ICOs.
In 2020, it was the king of NFTs and DeFi.
In 2024, the biggest trend in the crypto market is memecoins—and this is almost entirely happening on SOL.
Ethereum has no compelling use case to drive mass new user adoption. Instead, it has splintered into expensive Layer 2s, clunky cross-chain bridges, and friction in user experience.
Is RSIV a game changer, or is it too late?
Vitalik's RSIV proposal is ambitious. Bold and fearless. It's the kind of major thinking Ethereum needs.
But the crypto world changes at lightning speed. The reality is that even if RSIV is flawless, building, testing, and deploying it might take years.
By then, SOL, Sui, Aptos, and others may be further ahead.
Ethereum is not beyond saving—not yet. It still holds about $50 billion in total locked value (TVL), continues to attract loyal whale capital, and still carries institutional respect.
But it stands at a crossroads:
Continued slow and cautious upgrades—may gradually fade into history.
Or act quickly, innovate boldly, and strive to regain leadership in a rapidly changing market.
RSIV could be the beginning of a revival.
It could also become the first coffin nail if Ethereum acts too late.
