#TradingTools101

Dominance in DeFi and dApps: Ethereum remains the undisputed leader in the number of decentralized applications (dApps), DeFi protocols (decentralized finance), NFTs, and DAOs. The network effect is enormous: developers, users, and capital are flocking here. The future of these sectors is directly tied to the future of ETH.

Scalability (L2 solutions): High fees and low throughput of the main network (L1) are the main problems of the past. The solution is Layer 2 (L2) networks (Arbitrum, Optimism, Polygon zkEVM, Starknet, zkSync, etc.). They process transactions cheaper and faster, and then "batch" them into Ethereum L1.

Key event: The implementation of EIP-4844 (Proto-Danksharding) in 2024. It will reduce the cost of data storage for L2 by ~10-100 times, making transactions in L2 even cheaper and accelerating their growth.