To be fair Hive was starting to fall behind the times in terms of blockchain while being ahead for so many years.
How was it falling behind in core development? ETH and other chains are still trying to do things that Hive solved years ago.
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Smart contracts, DeFi, Marketplaces, trading pairs etc it's all fallen behind on. While sure it's ahead in terms of social aspects of a blockchain it fails in other areas or greatly lags behind still. However we are starting to see growth in those areas in particular with this possible smart contract implementation for the next hard fork of Hive I hope.
I tend to agree we are falling behind in those areas. I hope to change that with VSC as much as possible.