The future of the cryptocurrency market is based on Bitcoin

Ethereum virtual machine has become the largest and most significant platform for developers in the field of decentralized applications. However, as the Defi segment develops, there are more and more questions regarding the further development of innovation in the cryptocurrency market. As of March 2025, the total cost of Bitcoin exceeded $ 6 billion. At the same time, its decentralization, high liquidity and sustainability positions the main digital coin as a natural environment for the further development of decentralized finance.

Many experts understand that characteristic vulnerabilities for smart contracts, as evidenced by numerous loud hacks. On the other hand, bitcoin offers a reliable and proven environment for deploying Defi solutions. However, it should be understood that Ethereum has become a kind of pioneer in the field of decentralized finance.

His innovations and technical implementation served as a kind of testing ground for understanding what the network is capable of Bitcoin. Its programmability made it possible to create many products to developers, from automated credit platforms to complex derivatives. And this became possible largely thanks to the success of the network Ethereum.

However, the flexibility of the ether led to serious compromises. Investors witnessed DAO hacking in 2016, against which users lost $ 50 million. Further in 2022, Ethereum ran into the exploit of Wormhole, which cost investors more than $ 325 million.

Also, do not forget that the main altcoin is characterized by relatively low scalability and high commissions. And against this background, it is becoming increasingly difficult for him to compete with universal solutions of the 2nd level. This negatively affects the liquidity of the ether.

Author

Andrey Alexandrov