In the race to build faster, cheaper, and more scalable blockchains, every major altcoin ecosystem has traced back to Ethereum. What began as a single programmable blockchain has evolved into the base layer of liquidity, infrastructure, and innovation for the broader crypto economy.
Two High-profile Chains That Chose Integration Over Isolation
A new compelling argument has emerged, which redefines the future of Layer 1 (L1) blockchains, particularly those compatible with the Ethereum Virtual Machine (EVM). According to the Head of the Ecosystem at Ethereum Foundation, James_gaps, Celo and Ronin have proved why every altcoin’s L1 might eventually become an ETH L1.
Celo has shut down 110 validators and cut security costs by 99.8%, from $6.9 million per year to just $13,200. Meanwhile, Ronin, another significant gaming-focused L1, has paid out $35 million in staking rewards since 2023 to maintain its L1. Currently, they’re redirecting that capital to developers who actually drive revenue.
Fusaka upgrade, blob capacity is increasing eightfold, further enhancing their scalability.
However, James_gaps explained that the founder of Ronin put it best, and in all EVM L1s are future L2s. When you can outsource security to ETH for pennies on the dollar instead of millions, while still retaining your user base and maintaining sovereignty, the economic rationale for becoming an L2 becomes undeniable.
Building The Base For The Next Leg Higher
Ethereum is demonstrating strength in terms of blockchain performance and price. Analyst Luca has support over the past few months.
Luca believes that as long as ETH holds above these levels, the mid-term outlook remains bullish. In the coming days, the key test will become the resistance range marked in purple on the lower timeframes, which aligns with the golden pocket between the 0.2 and 0.618 Fibonacci Point of interest (POIs). A decisive break above this zone would confirm bullish continuation.
Furthermore, if the price fails to hold the Weekly Bull Market Support Band near the $3,790, and makes a decisive daily close below it, the expert is set to hedge part of my spot holdings to mitigate short-term downside risk. Until that breakdown actually occurs, the mid-term structure will remain bullish. Though the current consolidation appears to be a healthy base before the next move higher.
