Ethereum at the Crossroads: Can Vitalik's New Proposal Save It from Collapse?
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Ethereum at the Crossroads: Can Vitalik's New Proposal Save It from Collapse?
Will the EVM upgrade to RSIV, and can efficiency improvements keep up?
Navigating Web3 tides with focused insightsAuthor: Alertforalpha
Translation: Baicai Blockchain
Ethereum holders are no strangers to extreme market volatility. But this cycle? It feels like the rollercoaster has been going downhill nonstop.
While Bitcoin hits new highs, Ethereum has nearly stagnated—or even bled continuously. There’s no compelling new narrative. No explosive growth. Just a slow erosion of market dominance, as faster, cheaper competitors like Solana steal the spotlight. Now, Vitalik Buterin has put forward a radical new proposal that could permanently change how Ethereum operates. But is it already too late?
Vitalik's New Bet: Replacing the EVM
At the heart of Ethereum lies the Ethereum Virtual Machine (EVM)—the decentralized engine powering smart contracts on the network. It has been a cornerstone since Ethereum’s inception. But now, Vitalik is proposing a complete overhaul.
In a post on the Ethereum Magicians forum—an online hub for Ethereum developers—Vitalik suggested replacing the EVM with a new architecture called RSIV.
In simple terms:
- Existing contracts remain fully functional.
- New contracts can be written in Rust—a modern and highly popular programming language—as well as Solidity.
- Interoperability will be maintained between the old and new systems.
The goal? A massive boost in execution efficiency on Ethereum, tackling one of its biggest scalability bottlenecks.
Vitalik even hinted that this might be the only viable path to streamline Ethereum’s bloated execution layer—especially after abandoning earlier sharding promises.
In theory, this sounds transformative.
In reality? RSIV could take years to materialize.
And that’s the real problem.
ETH Stalls, SOL Rises
While Ethereum debates its next major upgrade, competitors aren’t standing still.
Solana, in particular, has surged far ahead:
- Processed 4.9 billion transactions over the past three months—far exceeding Ethereum.
- Weekly network revenue reached up to $21 billion, capturing nearly 48% of the market share.
- SOL’s decentralized exchange (DEX) trading volume now leads all chains.
Meanwhile, Ethereum’s data paints a grim picture:
- The ETH/BTC ratio has hit an all-time low.
- ETH ETFs continue to see outflows, while Bitcoin ETFs attract tens of billions of dollars.
- Ethereum’s market dominance has dropped to 7%, about 66% lower than its historical levels.
- Price performance? Bitcoin is up nearly 50% over the past year, while Ethereum is down 50%.
Wall Street’s choice is clear. The hottest capital in crypto is no longer flowing into Ethereum—but into Bitcoin and faster Layer 1 chains like SOL.
Even major players like Galaxy Digital are reshuffling their positions: On-chain data shows they’ve swapped $100 million worth of ETH for SOL.
The Harsh Truth: ETH Is Losing the Momentum
Ethereum’s current state bears a striking resemblance to Nokia, the once-dominant tech giant.
Like Nokia during the smartphone wars, Ethereum built a world-changing platform… but struggled to adapt 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 ruled NFTs and DeFi.
In 2024, the biggest trend in crypto is memecoins—and that action is almost entirely happening on SOL.
Ethereum lacks a compelling use case to drive mass new user adoption. Instead, it’s fragmented into expensive Layer 2s, clunky cross-chain bridges, and poor user experiences.
Is RSIV a Game-Changer—or Too Late?
Vitalik’s RSIV proposal is bold. Ambitious. Exactly the kind of big thinking Ethereum needs.
But the crypto world moves at light speed. The truth is, even if RSIV were flawless, building, testing, and deploying it could take years.
By then, Solana, Sui, Aptos, and others may have pulled even further ahead.
Ethereum isn’t doomed—not yet. It still holds around $50 billion in total value locked (TVL), continues to attract loyal whale capital, and retains institutional respect.
But it stands at a crossroads:
- Continue with slow, cautious upgrades—and risk fading into irrelevance.
- Or act swiftly and innovate boldly to reclaim leadership in a rapidly evolving market.
RSIV could mark the beginning of a revival.
Or it could become the first nail in Ethereum’s coffin—if it acts too late.
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