Ethereum’s Vitalik Gets Flak for L2 Interoperability Post Amid Market Panic

• Vitalik Buterin has suggested that Ethereum Layer 2 Interoperability concerns would soon be a thing of the past.
• However, the timing of Buterin’s post has attracted backlash.
• The reactions come as ETH has been the worst hit in the recent market crash.

The past weekend has been rough for crypto investors worldwide. Amid a largely unanticipated and sharp market sell-off, most investors have been left feeling antsy.

In the latest instance highlighting the tension in the air, a seemingly insightful post from Ethereum co-founder Vitalik Buterin on Layer 2s that would have typically triggered excitement and intellectual debates has triggered backlash and jabs instead.

Ethereum’s Vitalik Told to “Read the Room”

Vitalik Buterin has suggested that Ethereum Layer 2 interoperability concerns would soon be a thing of the past. The Ethereum co-founder shared this view in an X post on August 5, asserting, “I’m seeing lots of energy and will to make this happen.” 

Buterin, however, was quickly proven wrong if he expected the usual excited community response or intellectual debate on promising solutions, as several community members were quick to call out the Ethereum co-founder for failing to take into consideration current market conditions before making the post.

“Bro pls read the room,” prominent crypto community member “poordat” urged , surmising the prevailing sentiment before adding, “Like say EF [the Ethereum Foundation] is buying or something.”

Chiming in, Prominent crypto trader “Cold Blooded Shiller” quipped , “Bro thinks anyone caring about any of this today.”

On a more comical note, Euler Labs Special Advisor Laurence Day quipped , “Vitalik truly posting unburdened by what has been,” in a nod to U.S. Vice President Kamala Harris’ campaign slogan.

It is necessary to look at Ethereum’s price movement in recent days to understand these reactions.

ETH “Hit the Hardest”?

Amid a broad market sell-off this weekend, ETH has plummeted from highs of around $3,200 to, at one point, trade as low as around the $2,100 price point before paring losses to trade just above the $2,400 price point, representing an over 12% decline in the past 24 hours at the time of writing, more than any crypto asset in the top 20 by market cap. 

Fittingly, Steno Research Senior Cryptocurrency Analyst Mads Eberhardt asserted that ETH “has been hit the hardest” in the market crash.

ETHUSDT daily candle chart
Source: TradingView

The steep decline of ETH compared to other crypto assets comes as it appears to be facing significant selling pressure on top of macroeconomic concerns . Over the weekend, Jump Crypto, the crypto arm of Jump Trading, has unstaked nearly $500 million worth of ETH and moved another almost $200 million in ETH to exchanges.

Trying to explain Jump Crypto’s ETH moves, Steno Research’s Eberhardt has opined that Jump Trading is likely trying to wind up its crypto business and, on top of that, has likely “been caught on the wrong side of either equities or, more likely, the Yen carry trade, trying to raise as much fiat as possible to meet margin calls.”

On the Flipside 

• Ethereum’s Vitalik Buterin has been rarely known to talk about price.
• ETH is not the only major crypto asset posting significant losses. At the time of writing, BTC, BNB, and XRP are down by over 7% in the past 24 hours.

Why This Matters

The reactions to Vitalik Buterin’s post further highlight the growing panic in the crypto market amid the recent crash. It also highlights the dominant focus on price in the crypto space despite rhetoric about the importance of technology.

Read this for more on the Ethereum Crash:
Nomad Bridge Hacker Leverages Ethereum’s 33% Crash, Buys the Dip

See how Polygon has reacted to the recent market crash:
Polygon’s MATIC Tanks to Over 2-Year Lows as Fear Grips the Crypto Market