Celo and Ronin Transition to Ethereum Layer 1 for Cost Efficiency

Major altcoin ecosystems like Celo and Ronin are integrating with the Ethereum Virtual Machine (EVM), suggesting a shift towards using Ethereum's Layer 1 (L1) infrastructure for better scalability and cost efficiency.

Key Developments

Celo has reduced security costs by 99.8%, from $6.9 million to $13,200 annually, by shutting down 110 validators.
Ronin has redirected $35 million in staking rewards to developers, maintaining 350,000 daily active addresses across 1,000 games.
The upcoming Fusaka upgrade will increase blob capacity eightfold, enhancing scalability.
The economic rationale for becoming an L2 on Ethereum is strong due to cheaper security outsourcing while retaining user base and sovereignty.

Ethereum Price Analysis

ETH price is consolidating around a key support range, previously resistance in 2024.
If ETH maintains above this level, the mid-term outlook is bullish.
A break above the purple resistance zone could confirm a bullish continuation.
A failure to hold the $3,790 support may lead to hedging to mitigate downside risk.

Ethereum

The current consolidation is seen as a healthy base for potential upward movement.