The Ethereum Foundation, a non-profit entity in charge of developing the Ethereum network, is facing internal tensions that have peaked over the past week.
As CriptoNoticias has reported, The community’s discomfort with the current management of the Foundation is due to the repeated sales of ether (ETH)the cryptocurrency of the Ethereum network, to obtain funds to cover operating costs.
Amid these tensions, debates broke out about how to make ETH achieve the same returns as other assets such as bitcoin (BTC), solana (SOL) or XRP.
Likewise, “old defenders” of that ecosystem such as Eric Conner, Mariano Conti, DCinvestor and Zack Rynes They have questioned the Ethereum roadmap and suggest that Danny Ryanan Ethereum researcher and developer, takes over the leadership of the Foundation.
In this context, Galaxy, a prominent investment company, addressed the situation that the Foundation is going through in its latest weekly report and highlighted that only one thing will save Ethereum: increased use of the main chain (L1).
For Christine Kim, cryptocurrency market analyst, “new users on the chain who buy ETH-denominated assets and bring commissions and revenue from L2 to Ethereum’s L1 will be what brings the network out of its stagnation” .
Likewise, he points out: “Scaling through L2 has dispersed activity across more than 50 protocols, making ETH price appreciation difficult. In contrast, Solana, with more concentrated activity, has made an immediate price impact, although it may also need to adopt an L2 framework in the future.”
Kim attributes ETH’s poor performance to the activation of Dencun, an update that brought significant improvements in the organization of data stored in L2where the payment of commissions is cheaper than on the main chain.
According to data from Terminal TokenL1 revenues have plummeted by 99% since August 2024:
In any case, and beyond the challenges that the Foundation faces, to specialist Ethereum remains the most “credible and scalable” network to support future application adoption such as decentralized finance (DeFi), NFT, gaming and decentralized social networks.
That sets Ethereum apart from other networks like Solana, which is having technical difficulties “meeting the demand for the memecoin trading activity currently taking place on its platform.”
Vitalik Buterin wants to protect the price of ETH
In the midst of these tensions, the creator of Ethereum, Vitalik Buterin, shared what his plans are. to “protect” the price of ETH, through an extensive post he made on his personal blog.
According to explainedthere are several initiatives that could drive upward pressure on the price of the second most valuable asset on the market.
One of them is to encourage the use of ether, through L2, with a percentage of the commissions. In this regard, Buterin said: “This could be done by burning a part of the commissions, making staking permanently and donating the profits to the public goods of the Ethereum ecosystem.”
To improve the economics of Ethereum, It is proposed to support the based rollupssecond layer solutions that contribute to the main network through Maximum Extractable Value (MEV).
These rollups take advantage of L1 transaction sequencing, allowing validators to optimize the order of transactions in a block and capture greater value for Ethereum, according to Vitalik Buterin.
