Vitalik Buterin Rejects Bitcoin Allocation Rule, Stays Committed to Ethereum – Crypto News – Crypto News
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Vitalik Buterin Rejects Bitcoin Allocation Rule, Stays Committed to Ethereum – Crypto News

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Ethereum co-founder Vitalik Buterin has addressed a claim by crypto analyst Udi Wertheimer, who suggested that every investor should allocate at least 10% of their portfolio to Bitcoin.

Buterin disagreed, revealing that his Bitcoin stash is below this threshold, but added that he holds less than 10% in any asset outside of Ethereum. His remarks reflected a strong commitment to the world’s largest altcoin while signaling a cautious approach to diversification.

Ethereum’s Rocky Price Trajectory

The latest banter of Crypto Twitter has ignited discussions within the community about whether key industry figures should diversify their investments or remain heavily invested in their own blockchain ecosystems.

Despite the surge in Bitcoin and various other digital assets, Ethereum’s lack of movement has stood out. It is this stubborn stagnation that has fueled a trending meme. ETH has been struggling below $3,500 after it was stopped at $4,000 on a couple of occasions.

In fact, experts have warned that a drop to $2,800-$2,500 is possible if whale activity doesn’t increase amid price weakness. Currently, large transaction volume (LTV) remains low compared to previous bull markets which means that retail investors are driving the market rather than institutional players.

Unlike past speculative surges in 2017 and 2021, whale activity appears subdued. Analysts suggest that for Ethereum to continue its upward trend, LTV must rise to confirm institutional demand. However, if large holders start selling, a price correction could follow.

Is Layer 2 Hurting Ethereum?

There have also been concerns about Ethereum’s price and how Layer 2 scaling networks might be impacting the asset’s overall financial stability.

However, the Ethereum co-founder dismissed the idea of abandoning Layer 2 networks in favor of simply increasing ETH’s Layer 1 gas limit and argued that such an approach would undermine the network’s social structure. Instead, he urged developers to focus on boosting ETH’s value in a Layer 2-heavy ecosystem.

He proposed that Layer 2 networks contribute to the asset’s value by burning a portion of their fees or staking and donating proceeds to the community. Buterin also added the need for standardized cross-chain interoperability and stronger security measures to prevent censorship on privately run Layer 2 chains.

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