Ebunker: Ten Key Reasons to Be Bullish on Ethereum in the New Cycle
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Ebunker: Ten Key Reasons to Be Bullish on Ethereum in the New Cycle
Viewed across the four dimensions of regulation, technology, capital, and macroeconomics, Ethereum is entering a "compounding phase at an inflection point."
Navigating Web3 tides with focused insightsBy Ebunker
As U.S. regulators turn green, traditional Wall Street institutions quietly accumulate, Vitalik accumulates multiple Layer-1 scaling ideas for Ethereum, and the Federal Reserve subtly shifts toward rate cuts—all grand narratives are converging on one central theme: Ethereum.
A four-engine drive—regulatory thaw, technological iteration, macro trends, and the "ultrasound money" mechanism—is paving an accelerated runway for the next 3–18 months.
Ethereum ETF net inflows continue to hit new highs, transaction fees on blockchain explorers are nearing 5 million ETH, Ethereum has reclaimed its weekly MA200, and staking rates are approaching 30% and still climbing. From North American firms like SharpLink—a microstrategy-style firm for Ethereum—adding ETH to their balance sheets, to Robinhood announcing Ethereum L2 support for trading tokenized stocks in Europe, and Hong Kong accepting ETH as proof of assets for immigration, Ethereum’s core value is becoming a global consensus.
Political maneuvering, capital momentum, protocol upgrades, and foundation reforms are all roaring in unison—the market now faces just one critical question: Are you ready?
The following 10 reasons will systematically break down how ETH is evolving from industry consensus into a cross-cycle explosive engine.
1. The Largest Regulatory Breakthroughs and Policy Shifts in History
A dramatic shift in U.S. regulatory stance has brought renewed optimism for Ethereum. Paul Atkins, the SEC’s newly appointed chair, has voiced strong support for crypto innovation—a stark contrast to the Gary Gensler era.
Atkins has withdrawn Gensler-era proposals targeting decentralized finance (DeFi) and self-custody, pivoting instead toward an “innovation-first” strategy. In a recent roundtable, he emphasized that developers should not be punished simply for writing decentralized code.
This marks a major policy reversal: Under Gensler, the SEC investigated Ether as an “unregistered security.” Now, under pro-crypto leadership, Ethereum enjoys clearer regulatory clarity. With DeFi gaining top-level recognition—and Atkins calling self-custody “a fundamental American value”—the threat of hostile regulation has significantly diminished, greatly encouraging institutional participation in the Ethereum ecosystem.
Additionally, recent legislative developments in the U.S., particularly the Senate’s GENIUS Act, signal a pivotal moment for regulatory clarity around dollar-backed stablecoins.
These bills aim to establish clear frameworks for payment stablecoin issuers. Given Ethereum's role as the primary settlement layer for regulated stablecoins like USDC and PYUSD, and one of the most important chains for USDT, adoption is poised for strong tailwinds:
Comprehensive Stablecoin Framework
The "Guiding and Establishing National Innovation Using Stablecoins Act" (GENIUS Act) passed smoothly through the Senate with bipartisan support in June 2025. It imposes strict standards on stablecoin issuers, requiring 100% cash or Treasury reserves, monthly audit disclosures, and bankruptcy protection for token holders. Crucially, it allows both banks and non-bank companies to issue and regulate stablecoins under licensing.
Ethereum as Stablecoin Infrastructure
By legalizing and regulating stablecoin issuance, these laws validate dollar-backed tokens primarily existing on Ethereum. For example, Circle’s USDC and PayPal’s PYUSD are ERC-20 tokens built on Ethereum, relying on its security and global reach. This federal framework solidifies Ethereum’s role as the backbone of digital settlement.
Lawmakers themselves acknowledge that well-regulated stablecoins can “strengthen the U.S. dollar’s position as the world’s reserve currency,” while maintaining America’s competitiveness. This mission inherently leverages public networks like Ethereum, where dollar stablecoins circulate within DeFi and payments.
DeFi and Dollar Liquidity
Ethereum’s DeFi ecosystem—from lending protocols to decentralized exchanges (DEXs)—runs on stablecoin liquidity. By legitimizing stablecoins, the GENIUS Act effectively secures DeFi’s foundation. Participants can now use assets like USDC with greater confidence, free from fears of sudden crackdowns or legal ambiguity.
This encourages institutional involvement in DeFi—for instance, using stablecoins for trading, lending, and payments. In short, this legislation bridges traditional finance (TradFi) and DeFi: it invites banks, payment firms, and tech companies to issue and use Ethereum-based stablecoins, while implementing safeguards (KYC/AML, audits, redemption rights) to reduce systemic and legal risks. The end result is a supportive policy environment anchoring Ethereum’s role in the digital dollar economy.
Finally, another key piece of legislation, the CLARITY Act (H.R. 3633), has also made significant progress recently.
The CLARITY Act was first advanced by the House. On June 13, 2025, it passed the House Financial Services Committee (32:19) and the Agriculture Committee (47:6). It is now moving through the Rules Committee, awaiting scheduling for a full House vote.
The CLARITY Act removes the biggest lingering uncertainty over Ethereum in the U.S.: whether ETH qualifies as a security.
By explicitly classifying ETH (and any sufficiently decentralized Layer-1 token) as a “digital commodity” under CFTC jurisdiction, the bill eliminates the possibility of retroactive enforcement by the SEC. It creates a safe harbor for secondary trading and clarifies that developers and validators do not qualify as “brokers.” Together, these provisions drastically reduce regulatory risk premiums, clearing the path for Wall Street products tied to spot and staked ETH, and giving DeFi innovators on the network a green light.
In summary, given Ethereum’s dominance in hosting stablecoins and powering DeFi, these regulatory green lights significantly strengthen prospects for mid-term adoption, transaction growth, and integration into the traditional financial system.
2. The "ETH Version of MicroStrategy" Sparks Institutional Frenzy
An increasing number of large capital players are viewing Ethereum as a strategic asset—a trend accelerated by a bold move from SharpLink Gaming. Nasdaq-listed SharpLink recently completed a landmark allocation: acquiring 176,000 ETH (approximately $463 million), making Ethereum its primary reserve asset overnight and instantly becoming the world’s largest publicly disclosed ETH holder. Over 95% of this holding has already been staked to earn yield and enhance network security.
SharpLink’s CEO called this a “defining moment,” explicitly comparing the strategy to MicroStrategy’s Bitcoin approach—but with Ethereum. This bold initiative received strong backing from Joseph Lubin, founder of ConsenSys and one of Ethereum’s eight co-founders, who has since taken on the role of SharpLink’s new chairman. Lubin stated across multiple platforms: “SharpLink’s bold ETH strategy marks a milestone in institutional Ethereum adoption,” noting that “ETH not only possesses Bitcoin-like store-of-value properties but, due to predictable scarcity and continuous yield, becomes a truly productive reserve asset. As Ethereum increasingly becomes the foundational architecture of the digital economy, ETH is also seen as a strategic investment in the future of financial infrastructure.”
Crypto treasuries have suddenly gone mainstream: SharpLink’s success (its stock price surged 400% after the announcement) has prompted peers to follow suit. Publicly traded Bitmine Immersion (BMNR) recently announced raising $250 million specifically to purchase ETH, positioning itself as an “Ethereum treasury strategy company.” Led by Fundstrat co-founder Tom Lee, Bitmine saw its share price skyrocket over 3,000% within a week of the announcement, attracting investments from top-tier firms including Founders Fund, Pantera, and Galaxy.
Meanwhile, observers report that multiple companies—including in Europe—are exploring ETH-focused treasury allocations. While forward-thinking firms like BTCS Inc. had previously begun holding ETH, SharpLink’s move represents a new level of mainstream adoption.
For Ethereum, growing corporate treasury accumulation of ETH is undoubtedly bullish—it locks up supply (especially since most tokens are eventually staked) and signals strong institutional confidence.
Simultaneously, institutions are positioning via funds: the first Ethereum futures ETF launched at the end of 2024, and approval for spot Ethereum ETFs is imminent, potentially unleashing billions in new demand. BlackRock CEO Larry Fink, in a CNBC interview, said: “I think launching an Ethereum ETF is valuable. It’s just the first step toward asset tokenization—I truly believe this is where our future lies.”
It’s evident that Ethereum is increasingly being viewed by public companies and investment funds as a strategic investment and reserve asset, mirroring Bitcoin’s trajectory in the previous cycle.
3. Weekly Technical Indicators Reclaim MA200
Ethereum’s price chart shows multiple bullish technical signals, suggesting a potential upward trend reversal.
After a prolonged downturn, in May 2025, ETH reclaimed the weekly MA200—one of the most classic indicators of a bull market return.
From a technical standpoint, Ethereum’s overall market structure has improved: a series of lower lows have been replaced by higher lows and breakthroughs of long-term descending channels.
From May to June, ETH remained above the 200-week moving average, which sits around $2,500 and has become a “launchpad” support zone—ETH is consolidating above it, much like recovery phases in past cycles.
Momentum indicators confirm the positive structure: weekly candles show long bodies with shallow wicks, indicating strong buying pressure and limited selling during pullbacks. The rising slope of key moving averages and the rebounding MACD indicator point to strengthening upward momentum. Additionally, bullish chart patterns are emerging—for example, multiple analysts have identified a potential bull flag pattern on the ETH chart, which, if confirmed, could set medium-term targets above $3,000.
This suggests traders are regaining confidence in ETH, believing downside risks are largely contained and the path of least resistance is upward. Overall, Ethereum’s technical recovery above the 200-week MA, combined with higher highs and higher lows and strengthening momentum, indicates the asset is in the early stages of a significant bullish reversal, supporting a positive outlook over the next 3 to 18 months.
4. Ethereum Pectra Upgrade Rapidly Advances Roadmap
Ethereum’s technical roadmap is progressing steadily, continuously enhancing its foundational value. The Pectra upgrade (Prague + Electra hard fork), launched on May 7, 2025, marks a new phase for Ethereum, incorporating 11 EIPs covering improvements from smart wallets to scalability.
The most iconic changes include raising the individual validator staking cap from 32 ETH to 2,048 ETH, and recalibrating fees to dramatically increase Layer-2 throughput. These changes reduce costs, improve L2 performance, accelerate adoption of optimistic rollups and zk-rollups, and pave the way for future L1 scaling.
Meanwhile, the Pectra upgrade enables account abstraction, such as gasless payments and batch transactions, laying the groundwork for mass stablecoin adoption and further widening Ethereum’s lead over other blockchains in user experience and flexibility. As Ethereum core developer Tim Beiko summarized on April 24: “One highlight of Pectra is EIP-7702, enabling use cases like batch transactions, gas sponsorship, and social recovery without needing to migrate assets.”
At the mainnet level, Ethereum is gradually increasing its Gas Limit—from the original 15 million to 36 million, and potentially up to 60 million in the future—boosting Ethereum L1’s transactions per second (TPS) by 2–4x to around 60 TPS. After multiple scaling upgrades, Ethereum could eventually achieve triple-digit TPS. Ethereum researcher Dankrad Feist even proposed: “We have a blueprint to increase the Gas Limit by 100x within four years—potentially boosting Ethereum’s TPS to 2,000.”
At the same time, Ethereum is actively advancing zero-knowledge (ZK) integration as part of its “Surge” roadmap phase. Upgrades like Pectra (and the upcoming Fusaka) lay the foundation for full ZK-enablement of ETH and ZK-based lightweight validation clients.
Clearly, Ethereum’s core protocol is rapidly evolving, keeping it technologically ahead of competitors.
5. Favorable Macro Environment with Imminent Rate Cuts
In the coming months, shifting macroeconomic conditions will benefit Ethereum. After a year of high interest rates, markets expect the U.S. Federal Reserve to pivot toward rate cuts—potentially bringing benchmark yields below Ethereum’s staking returns.
According to CME Fed Watch projections, the federal funds rate could fall to 3.25% or lower by mid-2026. Meanwhile, Ethereum’s on-chain staking yield (currently around 3.5% annualized) is expected to rise as network activity and transaction fees increase.
This convergence creates a “double whammy effect”: falling traditional risk-free yields paired with rising native yields on Ethereum may flip the spread between ETH staking and Treasury yields into positive territory.
If Ethereum staking offers significantly higher returns than U.S. Treasuries or savings accounts, it enhances ETH’s appeal as a high-yield, liquid asset. Staking provides steady income, while ETH itself retains upside potential—making it an attractive combination for investors struggling to find yield elsewhere.
Moreover, it is well known that looser Fed policies (alongside improving inflation outlooks) tend to weaken the U.S. dollar, historically benefiting all crypto assets.
This accommodative monetary trend will be highly favorable for ETH over the next 3 to 18 months.
6. Staking: Dual-Track Growth from On-Chain and ETF Participation
Justin Drake, core Ethereum researcher, noted in multiple podcast interviews between 2024 and 2025: “Ethereum staking has become fundamental to network security and the economic model. If the U.S. approves staking-enabled ETFs, it could unlock billions in new institutional demand.”
Ethereum’s transition to proof-of-stake (PoS) opened a new dynamic around staking, and U.S. regulators are gradually opening up to investment products leveraging staking yields. With the SEC approving multiple spot Ethereum ETFs in 2024, the stage is set for the next innovation: a U.S. staking ETF offering exposure to ETH plus staking rewards.
Thus, Ethereum’s future staking landscape will evolve along two parallel tracks:
1. Traditional Institutional Staking: How a staking-enabled ETF might impact Ethereum’s ecosystem and value;
2. On-Chain Protocol Staking: The role of protocols like Lido and Ether.Fi in popularizing staking.
Growing staking participation: Ethereum staking experienced strong growth following The Merge and Shanghai upgrade. As of Q1 2025, approximately 28% of total ETH supply is staked across validator nodes—a record high, reflecting strong confidence in the network.
Diversified On-Chain Staking Counters Centralization Risks
Notably, ETH staking has not centralized: Lido Finance remains the largest single staking provider, but its once-dominant market share (over 30%) has not continued to concentrate. This is because Lido itself has driven community staking (CSM) and distributed validator technology (DVT) initiatives (SDVTM), increasing decentralization within its own staking pool—effectively dispelling earlier concerns about centralization in ETH staking.
Meanwhile, the staking landscape is diversifying: platforms like Ether.Fi have grown their staked ETH by about 30% over the past six months, with net staking inflows exceeding 310,000 ETH in the last month alone. Particularly innovative strategies involving leverage—such as those offered by Ether.Fi—are making staking more accessible and capital-efficient: users can participate with small amounts, maintain liquidity, and even amplify returns, all of which encourage broader participation.
Staking rewards are changing investor mindsets—ETH is no longer a non-yielding asset but is gradually becoming a productive one, with returns comparable to dividends or interest, even answering Warren Buffett’s earlier criticisms of gold and Bitcoin for lacking yield. Overall, the amount of staked ETH continues to hit new highs, indicating holders view staking as an attractive long-term strategy (earning yield while securing the network), not short-term speculation.
Anticipated U.S. Staking ETF and Its Impact
With spot Ethereum ETFs already trading in the U.S., the natural next step is launching an ETF that not only holds ETH but also participates in staking to earn rewards. Such a product would be groundbreaking—offering traditional investors exposure to both ETH price appreciation and ~3–4% annual staking yield within a single, regulated instrument. If approved, the impact on Ethereum could be profound:
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Increased Demand and Reduced Circulating Supply: A staking ETF could attract institutional capital and retirement accounts that prefer ETF convenience. This would lock more ETH into staking contracts, effectively reducing circulating liquidity. A popular ETF could give ETH prices a powerful “push.”
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Validation of Staking Legitimacy: Especially with the new SEC chair clarifying that “validators and staking-as-a-service” fall outside securities jurisdiction, approval of a U.S. staking ETF would send a strong signal.
Industry experts like Bloomberg’s James Seyffart and The ETF Store’s ETF analyst predict that by the end of 2025, the SEC may allow staking functionality in major asset ETFs like Ethereum. In short, a U.S. staking ETF seems less a question of “if” than “when.”
Fundamentally, it would normalize staking in the eyes of traditional investors as a form of “crypto dividend” or bond-like interest. This mainstream acceptance could expand Ethereum’s investor base, attracting not just growth investors but also those seeking yield and income.
In summary, Ethereum staking has become a core pillar of the network’s value proposition, and the arrival of a U.S. staking ETF could be game-changing. This growing staking base reduces circulating supply and encourages long-term holding, supporting ETH prices. If regulators allow ETFs to integrate staking, it will invite a new class of investors to participate in Ethereum’s yield within a familiar framework—potentially boosting demand and reinforcing ETH’s status as a yield-generating asset.
Allen Ding, founder of Ebunker, said: “As a top-tier staking provider in Asia, I’d like to speak from a node operator’s perspective about Ethereum’s potential. Ethereum currently has over 1 million nodes and thousands of node operators—one of the most decentralized protocols in the blockchain industry, and indeed in human society as a whole.
Although Ethereum has underperformed in application ecosystem vibrancy and user growth in recent years, I believe its long-standing reputation for decentralization and security is its true, unshakable moat. We’re seeing big companies like Robinhood still choosing Ethereum L2s to launch tokenized securities—that alone reveals Ethereum’s rock-solid standing in people’s minds.
So I’ll boldly say it: Ethereum cannot be killed—neither literally nor figuratively.”
7. Explosion of Layer-2 Adoption and Multi-Chain Competition
Ethereum’s strategy of scaling via Layer-2 networks is delivering remarkable results. The L2 strategy has eliminated many would-be “Ethereum killers.”
Rather than competing against every emerging blockchain, Ethereum empowers them as L2s—even major corporations are joining in. For example, Sony launched its own Ethereum L2 blockchain, Soneium, aiming to bring Web3 to gaming, entertainment, and finance. Sony’s platform uses Optimism’s OP Stack technology, inheriting Ethereum’s security while offering customizable scalability. This marks the first time a global consumer tech giant has directly built on Ethereum’s L2 framework, powerfully validating Ethereum’s strategic vision.
Robinhood has also joined the movement, announcing plans to build its own L2 on Arbitrum to support new business lines like tokenized stocks and perpetual crypto contracts in the EU. As one of the hottest financial platforms in the U.S., Robinhood’s move underscores the enduring appeal of Ethereum’s L2 strategy to mainstream fintech companies.
Meanwhile, Coinbase’s L2 network Base has seen explosive growth since its 2024 launch. Base now processes over 6 million daily transactions—surpassing established L2s like Arbitrum in usage. In fact, by the end of 2024, Base accounted for about 60% of all L2 transactions, demonstrating the massive scalability potential of Ethereum L2s when backed by major platforms.
Not to be outdone, Binance has adopted Ethereum’s technology—its opBNB chain is an Optimism-based L2 that achieved over 4,000 TPS in testing and processed 35 million transactions during its test phase. By using Ethereum’s EVM and OP Stack, opBNB extends Ethereum’s influence into the BNB Chain ecosystem while maintaining compatibility.
The conclusion is clear: Ethereum’s network effects are so strong that they’ve turned potential competitors and major enterprises into integral parts of its L2 superstructure. This widespread L2 adoption—from Sony to Robinhood, Coinbase, and Binance—drives more usage and fee revenue back to Ethereum, reinforcing its position as the preferred settlement layer.
8. Mainstream and Political Adoption Converge
Beyond price, broader ecosystem signals indicate Ethereum is increasingly embedded into the fabric of technology, business, and even politics.
A striking example is the Trump family entering crypto via World Freedom Financial (WLFI). WLFI aims to deliver high-yield crypto services and digital asset trading—essentially bringing DeFi concepts to the masses.
Trump Jr. publicly predicted WLFI has the potential to “reshape DeFi and CeFi, completely transforming the financial industry,” emphasizing: “We’re just getting started.” Around the time of this tweet, WLFI spent $48 million purchasing ETH to back its DeFi operations.
The Trump family’s involvement—reportedly holding a majority stake in WLFI and even appointing Donald Trump himself as “Chief Crypto Advocate”—suggests even traditionally conservative figures now recognize the value of Ethereum-based finance, serving as indirect validation of Ethereum’s technology.
At the same time, institutional investor sentiment is undergoing a fundamental shift.
In June 2025 alone, net inflows into spot Ethereum ETFs exceeded $1.1 billion—a monthly record for 2025 and over 27% of the cumulative net inflow total ($4.18 billion). This shows institutional capital is rapidly and massively entering the Ethereum market. More importantly, this isn’t a short-term anomaly but a sustained allocation trend:
As of June 12, 2025, spot Ethereum ETFs recorded positive net inflows for 19 consecutive trading days—breaking the historical record for longest streak among crypto ETFs. On June 11, single-day net inflows reached $240 million—far exceeding Bitcoin ETFs’ $165 million on the same day—and highlighting growing market preference for ETH.
This shift in capital flows sends a clear message: institutions are no longer merely “watching” Ethereum—they are decisively “allocating” to it.
The logic is straightforward:
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Ethereum offers diversified yield structures (staking rewards, MEV capture, L2 revenue sharing),
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Has a more efficient technical upgrade path (e.g., EIP-4844, modular architecture),
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And maintains a leading developer ecosystem and vibrant applications.
For institutions, ETH is no longer just a Bitcoin alternative—it’s increasingly seen as “equity in the digital financial system,” representing foundational stakes in the future of global networked finance. This shift in positioning is driving ETH toward becoming a core asset in mainstream financial portfolios.
Morgan Stanley analysts recently reiterated: “If Ethereum continues to upgrade smoothly, further institutional investment (like new ETFs) will continue pushing ETH prices higher. We still stand by our bold long-term target of $15,000.”
Furthermore, this reflects Ethereum’s journey: from being ignored by regulators and traditional powers to now being embraced by the U.S. president. Other ecosystem signals abound: PayPal launched its Ethereum-based stablecoin (PYUSD), Visa is using Ethereum to settle USDC payments.
Adoption beyond the U.S. is also accelerating.
Since 2021, Europe, Asia, and emerging markets worldwide have actively adopted Ethereum across policy, finance, and tech:
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Europe: After MiCA took effect, Deutsche Bank and BNP Paribas began using Ethereum for issuing and settling digital bonds. Amundi, France’s largest asset manager, stated: “Ethereum is central to our digital securities strategy.” In 2023, the London Stock Exchange (LSE) announced support for listing Ethereum-based digital assets. Switzerland’s SIX exchange has offered Ethereum spot and derivatives since 2022.
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Asia-Pacific: In 2024, Hong Kong launched a spot ETH ETF with staking support; compliant exchanges like HashKey and OSL adopted Ethereum as their underlying asset custody layer. Singapore’s DBS Bank has run Ethereum DeFi liquidity pool pilots since 2022, with ETH as a core collateral. Japan’s MUFG leads Progmat Coin, issuing yen stablecoins on Ethereum-compatible architecture. Australia’s eAUD is EVM-compatible and built on Ethereum.
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LatAm & Middle East: Brazil’s central bank CBDC, UAE, and Abu Dhabi are advancing asset tokenization and digital identity—favoring Ethereum and L2 platforms.
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Africa: Nigeria’s central bank partnered with Consensys in 2022 to advance eNaira, a national payment system based on Ethereum’s architecture.
These cases show that whether in Europe, Asia, the Middle East, or Africa, Ethereum has become the preferred foundational layer for digital asset issuance, custodial solutions, compliance pilots, and enterprise innovation.
As more governments, fintech firms, and enterprises integrate Ethereum into real-world operations, actual demand and real-world utility for ETH will further reshape supply-demand dynamics—opening wider room for growth over the next 3–18 months.
9. Vitalik’s Continued Leadership and Ethereum Foundation Reform
Ethereum is breaking new ground not only in technology and markets, but also in organizational development and thought leadership. Vitalik’s ongoing research, foundation restructuring, the creation of Etherealize, and the co-evolution of L1 and L2 are collectively pushing the ecosystem toward greater maturity and influence.
Vitalik: The Sole Crypto Leader After Satoshi
Vitalik Buterin is hailed as “the only true successor to Satoshi.” He is not only Ethereum’s founder but also a pioneering researcher and influential voice on social media shaping the ecosystem. His current focus includes:
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ZK Strategy: Vitalik has established zero-knowledge proofs (ZK proofs) as Ethereum’s core technical direction for the next decade. He continues to push for ZK dominance in scaling and security, while cautioning against over-reliance on a single technical path. While the industry has achieved breakthroughs like real-time ZK proofs, Vitalik reminds us that performance optimization, auditability, and usability remain challenges—ZK proofs will play a long-term critical role in enhancing Ethereum’s efficiency and security.
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RISC-V + ZK-EVM Performance Revolution: Vitalik advocates for a universal RISC-V VM as a long-term goal, believing that such an upgrade could boost execution efficiency by 50–100x or more. Meanwhile, ZK-EVM serves as a transitional supplement. Through architectural innovation, Ethereum could gain a decisive edge in verifiability and performance, strengthening its core competitiveness.
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Light Node Roadmap: Vitalik promotes innovations like “partially stateless nodes,” allowing ordinary users to verify the network by storing only relevant sub-states—lowering hardware barriers and reducing RPC centralization. This direction enhances Ethereum’s decentralization and user participation, laying the technical foundation for broader societal engagement.
In crypto, his Twitter following ranks second only to CZ. His personal statements alone can influence the entire industry and spark wide discussion. Vitalik consistently contributes deep research and cutting-edge discourse, cementing his status as the undisputed thought leader in blockchain.
Foundation Restructuring: Organizational Optimization and Talent Advancement
In 2025, the Ethereum Foundation (EF) unveiled a new organizational structure. Former Executive Director Aya Miyaguchi was promoted to President, focusing on global strategy and external relations. The board now consists of Vitalik Buterin, Aya Miyaguchi, Swiss legal counsel Patrick Storchenegger, and newly appointed director Hsiao-Wei Wang, overseeing long-term vision and compliance.
Operationally, EF introduced a “Co-Executive Directors” model for the first time: former Protocol Support lead Hsiao-Wei Wang and Nethermind founder Tomasz Stańczak jointly manage day-to-day operations. Bastian Aue (organizational strategy, hiring/training) and Josh Stark (project execution, market communication) joined the management team, enabling cross-functional collaboration.
This restructuring clearly separates decision-making from execution, establishing a “Board–Management” two-tier governance model. It reduces single-point risks, improves execution efficiency, and enables smoother coordination across three core areas: protocol & privacy & scaling, ecosystem development (Ecodev), and operational support.
Overall, EF is evolving from a “linear” management model into a flatter, multi-centered governance structure—laying a solid foundation for Ethereum’s next phase of cross-L1/L2 scaling and multi-domain collaboration.
Etherealize: New Bridge to Wall Street Strategy
In January this year, a new independent nonprofit, Etherealize, joined the Ethereum ecosystem. Funded by the Ethereum Foundation but operating independently, Etherealize positions itself as “Ethereum’s institutional market and product hub.” Led by Wall Street veteran banker Vivek Raman, and joined in March by Danny Ryan as co-founder, Etherealize focuses on serving banks, brokerages, and asset managers with research, education, and product integration—particularly advancing asset tokenization, customizable L2 solutions, and practical applications of zero-knowledge privacy tools.
The establishment of Etherealize signifies Ethereum’s evolution from a pure tech community into financial infrastructure—with targeted outreach to Wall Street, further solidifying ETH’s status as an institutional-grade digital asset.
Technical Vision Shift: Coordinated Development of L1 and L2
While deeply committed to L2 scaling, Ethereum is also accelerating improvements to mainnet (L1) base performance. In a Decrypt interview on June 2, Vitalik Buterin stated: “I think we should scale Ethereum mainnet by about 10x over the next year or so.”
The most visible progress is the dynamic increase in Gas Limit—raised from 15 million to 36 million in 2024, and potentially to 60 million after voting in 2025—boosting Ethereum mainnet’s peak TPS to 60, a fourfold increase.
Unlike Bitcoin’s fixed block size, Ethereum’s Gas Limit is dynamically adjusted by network validators without requiring hard forks—enhancing governance flexibility and community participation. Radical proposals like EIP-9698 suggest even larger increases in the coming years, though the community generally favors balanced progress across security, decentralization, and performance.
Recent tests show that a 60 million Gas Limit has manageable impacts on node performance and block propagation delays—laying a solid foundation for future L1+L2 synergy and serving billion-user scenarios.
10. Tokenomics: The Ultrasound Money Thesis Still Holds
Ethereum’s native token economics continue to strengthen its investment value. The “ultrasound money” theory is materializing: fee burning frequently exceeds new issuance, and during high-activity periods, ETH supply can even enter net deflation. Since the London upgrade, over 4.6 million ETH have been burned—continuously reducing circulating supply.
From a supply perspective, higher staking participation does slightly increase protocol emissions (more validators = more reward ETH issued), but since transitioning to PoS, Ethereum’s annual issuance (~700,000 ETH for 30 million staked ETH) remains far below the PoW era (~4.5 million ETH annually).
From a consumption perspective, on-chain activity remains robust—Ethereum consistently processes tens of billions in transactions daily, spanning DeFi, NFTs, and payments, surpassing all other smart contract platforms. Even during bear markets, this healthy network usage indicates Ethereum’s utility—and thus demand for ETH as gas—is on a steady upward trend.
Even with ~28% staking participation, annual ETH issuance via staking accounts for only about 0.5–1% of total supply. Under EIP-1559’s fee burning mechanism, high network activity periods still see net deflation in ETH supply.
In fact, Ethereum’s net issuance hovers near zero—or even negative—depending on network fees. When burn exceeds issuance, Ethereum’s monetary policy becomes deflationary or neutral in many scenarios. Thus, as staking grows, Ethereum maintains low “inflation,” high “yield,” and an increasing amount of ETH locked to secure the network—achieving “have your cake and eat it too.”
As L2 adoption (as discussed earlier) drives more transactions to settle on L1, Ethereum’s fee revenue (and thus ETH burn volume) should continue to grow. Overall, Ethereum’s mid-term supply-demand outlook is highly bullish: effective supply decreases while demand from users and long-term stakers/investors rises.
Conclusion
Across regulatory, technological, capital, and macro dimensions, Ethereum is entering a “compounding inflection zone.” When policy ceilings are lifted, protocol performance iterates continuously, institutional allocation shifts from experimental to strategic, and global liquidity turns loose again—these four forces do not act in isolation but instead couple together, creating exponential resonance.
History tells us: truly game-changing assets often complete valuation re-pricing before consensus fully forms. Today, ten core arguments stand side by side, outlining a clear timeline—from regulatory clearance to treasury adoption, from Pectra upgrades to staking ETFs, from L2 scaling to deflationary tokenomics. All signals point to the same answer: ETH is no longer just “the next opportunity”—it is “the most certain source of incremental upside today.” The market will eventually price in this logic—the only question left is whether you’ll turn to the final page before or after the story ends.
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