Messari’s latest newsletter posits that the industry is witnessing crypto’s adolescence, emphasizing that smart contract blockspace is becoming a commodity.

CEO Ryan Selkis acknowledged 2023 as Ethereum’s best year yet, citing its status as the strongest network in terms of community size and revenue generation through fees. However, he suggested that the crypto industry is still in its “adolescence” while asserting that smart contract blockspace is evolving into a commodity, implying a paradigm shift in the way developers approach blockchain platforms.

Bullish Case for Ethereum

A significant point raised in Messari’s report is the expected decentralization away from Ethereum by developers. The market intelligence company predicts that most developers will lean towards the lowest cost and highest performance blockchains, interacting with the second-largest blockchain primarily through rollups and bridges – a shift that aligns with Ethereum’s long-term explicit direction.

Contrary to the narrative of Ethereum losing its prominence, Selkis outlined a bullish case for the blockchain network. The exec highlighted Ethereum’s long-established network reliability, a liquid ecosystem, and a staggering $300 billion market cap – ten times higher than its nearest smart contract network competitor.

Selkis emphasized that Ethereum’s maturity becomes a key factor in attracting rollup and app developers, ensuring the platform remains a significant player in the evolving blockchain ecosystem.

Ethereum’s potential success in 2024 could be closely tied to how traditional finance (TradFi) embraces the platform. According to Messari, Ethereum, with its clean and environmentally friendly narrative, is positioned as an attractive option for Wall Street. Selkis anticipates a fast follow-up of an ETF for Ethereum, similar to the trend observed with Bitcoin.

Ethereum’s appeal to traditional financial institutions becomes more evident with a net deflationary supply and an annual fee generation of around $300 million, the report detailed.

Messari’s annual report characterized Ethereum as a “Chaotic Good” as it continued to thrive on volatility and chaos. While Bitcoin is often considered a bet against bankrupt central banks, Ethereum, according to Selkis, represents a bet against morally bankrupt investment banks. This depiction underscored Ethereum’s adaptability in the face of geopolitical uncertainties.

Solana: Back From Dead

Solana emerged as the crypto industry’s comeback player of the year, defying skepticism following the FTX collapse last fall. The ecosystem experienced a remarkable resurgence, marked by a rapid stream of new product releases, a surge in on-chain liquidity, and increased availability of developer tools.

Notable tech upgrades, including local fee markets, QUIC, and stake-weighted QOS, contributed to a significant reduction in Solana’s downtime compared to 2022.

The focus in 2024 will be on:

• Performance enhancements via Firedancer and Sig.
• The development of light clients through Tinydancer.
• The deployment of the token-22 standard, which extends Solana token functionalities.