Vitalik Buterin Criticizes DeFi Sector, Calls for Return to Original Principles

Vitalik Buterin Criticizes the DeFi Sector

In a recently published tweet, Vitalik Buterin, the founder of Ethereum, expressed his concerns about the current state of the DeFi sector. According to BTC-ECHO | Bitcoin & Blockchain since 2014, he criticized the sustainability of many DeFi applications and called for a return to original principles. Buterin sees the source of many returns in the DeFi space, which often rely on new users rather than genuine economic activities, as particularly problematic.

Despite his criticism, Buterin praised decentralized exchanges and stablecoins as positive examples for the sector. However, his statements also faced resistance within the community; Kain Warwick of Synthetix accused him of underestimating the importance of DeFi.

Solana Catches Up with the Ethereum Ecosystem

According to the Crypto Valley Journal, Solana has developed into a serious competitor for Ethereum and ranks among the top 10 blockchains by market capitalization. The high number of daily transactions and innovative projects like the Saga phone contribute to its growing popularity.

A unique consensus mechanism of Proof of History (PoH) and Proof of Stake (PoS) allows Solana to process more transactions per second than other blockchains. Despite some challenges, the ecosystem remains robust with steadily increasing user activity and new developments like Firedancer, a software to improve network performance.

Circulating Ethereum (ETH) Supply Reaches Yearly High: Inflation Concerns Grow

BeInCrypto reports an increase in the circulating ETH supply to 120.30 million units – a yearly high. This development is driven by a reduced burn rate and declining user activities.

Data show a significant drop in daily active addresses and completed transactions since June this year. This led to a roughly 15% decline in the price. Experts now warn of potential further price decreases or increases depending on future market behavior.

Bitcoin, Ethereum, Litecoin & More: Midday Cryptocurrency Price Update

According to finanzen.ch, several cryptocurrencies fell at midday: Bitcoin dropped by -0.80 percent to $62,351 USD, while Ethereum also faced losses (-1.44% at $2,644 USD). Litecoin showed similar trends with a decline of -0.95 percent ($62 USD).

Smaller currencies like Ripple or Cardano showed little change or slight downward trends, while Monero recorded a loss of -3.70% ($160 USD).

Ethereum's Mystery: An Old Wallet Awakens!

Investing.com Deutsch reported that Whale Alert, a leading blockchain detective, discovered a nearly ten-year inactive wallet. The pre-mine wallet contained an impressive number of coins (2000 ETH), worth around five million dollars today. Analysts warn that this sudden activation could potentially trigger panic sales.

Massive Transfer by the Ethereum Foundation: Will Ether Rise or Fall?

BTC-ECHO reported that the ETH Foundation transferred nearly 100 million US dollars in the form of 35K Ethers to Kraken. The transfer sparked speculation, but CEO Aya Miyaguchi emphasized that this was part of their financial management activities. However, it remains unclear if this move could have an impact, as large transfers have previously caused either price jumps or crashes, according to Arkham Intelligence.

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