Recently, there have been many interesting changes in the Ethereum ecosystem. The number of on-chain transactions and active addresses are hitting new highs one after another, yet Gas prices have dropped to a low of $0.03. Behind this contrast, a complete reshaping of the capital flow in the entire crypto market is actually underway.

Speaking of Gas fees, they used to be ridiculously expensive. Ordinary users wanting to participate in the Ethereum ecosystem were scared away, and small to medium projects were also kept out. Now, with Gas fees significantly reduced, the ecosystem’s door has been opened. This is great news for the long-dormant altcoin tracks — capital and users are expected to flow back, and the ecosystem’s vitality will be thoroughly activated.

However, this development is not very friendly to L2 projects. OP, ARB, ZK, STRK — these L2 projects were originally born because of Ethereum network congestion and high Gas fees. Now that Ethereum L1 has addressed speed and cost issues, the competitive advantage of L2 has been greatly weakened, and its necessity is under serious scrutiny.

Looking at other public chains, BSC and SOL have been very popular over the past two years, but the meme myth that can generate billion-level wealth effects still originated in the Ethereum ecosystem. SHIB in the 2021 bull market and PEPE in this cycle have created phenomenal wealth-creating legends on Ethereum, with influence far surpassing similar projects on BSC and SOL.

Overall, driven by technological breakthroughs, Ethereum is entering a critical period of a king’s return. In the short term, the ecosystem is likely to see many impressive projects emerge.