Ethereum

2024

Solana

Galaxy

Mike Novogratz’s crypto bank Galaxy Digital says 2024 will be a crucial year for Ethereum, as other layer-1 blockchains will raise the stakes. 
<a href="https://crypto.news/tag/ethereum/" target="_blank" rel="noreferrer noopener">Ethereum</a> appears to be navigating uncharted waters, as the network is set to face “unprecedented challenges” in 2024 presented by alternative layer-1 networks such as <a href="https://crypto.news/tag/solana/" target="_blank" rel="noreferrer noopener">Solana</a>, <a href="https://crypto.news/tag/galaxy-digital/" target="_blank" rel="noreferrer noopener">Galaxy Digital</a> writes in its “Watch This Space” <a href="https://glxy.galaxy.com/hubfs/Research/Watch_This_Space_2024.pdf" target="_blank" rel="noreferrer noopener">report</a>. 
While the report highlights Ethereum’s commitment to supporting layer-2 networks and integrating technologies such as restaking, it acknowledges the emergence of other networks like <a href="https://crypto.news/tag/celestia/" target="_blank" rel="noreferrer noopener">Celestia</a>, which promise an “unprecedented amount of flexibility” in catering to diverse user needs related to privacy, cost, security, and compliance. 
<blockquote class="wp-block-quote"> 
 “It will be important to watch heightened competition and differentiation between Solana and other modular blockchains like Ethereum and Celestia in 2024.” 
 Galaxy Digital 
</blockquote> 
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Galaxy Digital analysts note that Ethereum’s modular architecture, particularly various rollup types, will introduce new challenges and technological risks due to their early stage of development. Singling out Solana as the most distinctive general-purpose blockchain embracing a monolithic architecture, they position it as the primary competitor against Ethereum. 
The Ethereum blockchain uses validators to secure its network, but there’s a limit to how many validators can join or leave the network in each time period, called an epoch. As Ethereum has grown, the limit for validator entries and exits has also increased. Looking ahead, Galaxy says Ethereum developers may need to “weigh drastic changes” to staking dynamics and monetary policy in 2024 if the network experiences a surge in usage, resulting in increased transactions and staking demand. 
 Read more: <a href="https://crypto.news/coinbase-to-address-ethereum-client-diversity-woes/"> Coinbase to address Ethereum client diversity woes </a>

Galaxy predicts ‘unprecedented challenges’ for Ethereum in 2024

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