Original author: 1912212.eth, Foresight News
The author once wrote an article titled Severe loss of wealth effect, can Ethereum survive the mid-life crisis?, detailing the huge challenges faced by Ethereum in this cycle. Problems such as lack of innovation, lack of sense of direction, and bloated team have led to its being criticized by the community. Vitalik was also pulled down from the altar and criticized to pieces. However, the market rebounded after extreme pessimism. In April this year, ETH rose from $1,400 to nearly $2,800.
Are Ethereums fundamentals getting better? What changes have taken place in the much-criticized Ethereum recently that are worth noting?
Ethereum spot ETF continues to see net inflows
Once upon a time, the Ethereum spot ETF was in a state of net outflow for a long time. However, since April 22 this year, market funds have continued to pour in. As of June 5, there were only seven days of net outflow, and the rest were net inflows. There were even four days with a single-day net inflow of more than US$90 million, and seven times with a single-day net inflow of more than US$60 million.
SoSoValue data shows that the cumulative net inflow of the US Ethereum spot ETF has risen to US$3.23 billion, and there is still no sign of slowing down.
Negotiating Ethereum-based cooperation with sovereign wealth funds of major countries
Ethereum co-founder and Consensys CEO Joe Lubin said on Tuesday that his company is in talks with major sovereign wealth funds and banks in a very powerful country about possible construction based on Ethereum, involving layer 1 and layer 2 infrastructure. However, the details of the cooperation have not yet been made public, and the markets reaction to the news is more based on expectations. If the news is finally confirmed and announced, it will undoubtedly play an important role in boosting market confidence.
In addition, Consensys served as the lead investor in SharpLink Gamings $425 million financing, and Joseph Lubin will serve as chairman of SharpLinks board of directors after the completion of this round of financing.
Bitcoin has a strategy to accumulate, and then more companies continue to follow suit, driving the strong buying of the currency price. Ethereum should have companies to drive purchasing power.
SharpLink, a Nasdaq-listed company, plans to use the proceeds from this round of financing to purchase Ethereums native asset ETH and use it as its main treasury reserve asset.
According to Bloomberg, Joe Lubin said that about six months ago, under the influence of the most famous advocate of digital asset hoarding, he decided to set up a company to invest in Ethereums native token. I was having dinner with Michael Saylor, did some research, and started discussing with colleagues how cool this idea was, Lubin, founder and CEO of Ethereum software infrastructure company Consensys, said in an interview, No one in our company had studied this direction in depth before. Later we found that this strategy didnt seem to be particularly dangerous.
Ethereum Foundation lays off staff and cuts operating expenses
The Ethereum Foundation has been criticized for its bloated team. On June 3, the Foundation finally took action to lay off some employees and reorganize its research and development team, renaming the department Protocol to focus on the core challenges of protocol design. The adjustment is aimed at responding to the communitys continued criticism of the Foundations management and strategic direction. The Foundation said that the reorganized Protocol team will work around three major priorities: expanding the scalability of the Ethereum underlying network, advancing blobspace expansion in data availability strategies, and improving user experience.
The foundation mentioned in the announcement that some members of the RD team will no longer remain in their positions and encouraged other teams to absorb these talents. The number of layoffs was not disclosed. In addition, the foundation stated that the reorganized team will be committed to improving the transparency of upgrade schedules, technical documentation and research. Co-executive director Hsiao-Wei Weng said on social media X that he hopes the new structure will drive core projects forward more efficiently.
However, some people said that key issues have not yet been resolved. Kyle Samani, co-founder of Multicoin Capital, tweeted, Please note that the definition of the word focus usually means less, not more, especially that goals should not conflict with each other. But when we look at it from the perspective of goal 3 (i.e., L1, L2 network expansion, improving user experience), goal 1 (i.e., layoffs) and goal 2 (i.e., clear division of responsibilities) are contradictory.
The Ethereum Foundation announced a new fiscal management policy in June 2025, aimed at ensuring long-term financial sustainability. According to the official blog, the Foundation sets annual operating expenses at no more than 15% of total assets, and plans to gradually reduce it to 5% over the next five years. In addition, the Foundation will maintain a 2.5-year operating expense buffer and regularly evaluate whether to sell ETH to replenish fiat reserves. This policy reflects the Foundations cautious approach to the management of its treasury, especially in a market environment with large ETH price fluctuations.
The foundation also emphasized that on-chain funds will only be deployed in audited, decentralized DeFi protocols, focusing on low-risk strategies such as staking and lending. This move not only reduces financial risks, but also echoes Ethereums Defipunk principle and privacy protection concept.
In the past, the Ethereum Foundations coin sales behavior has always caused dissatisfaction in the community after being monitored and reported. Now the foundation has finally chosen to take a more cautious attitude to respond to expenditure issues. These measures show that the foundation is laying the foundation for the long-term development of Ethereum by cutting operating costs and optimizing resource allocation. At the same time, it also gives the market reassurance in terms of alleviating market selling pressure.
Gas limit adjusted to 60 million
Recently, Ebunker tweeted that with the support of 15% of validators, Ethereum is expected to raise the block Gas limit to 60 million. The higher the Gas limit, the more transactions a block can handle, and the faster the network will be. Among the many expansion paths, raising the Gas Limit can be said to be the most immediate way. In addition, raising the Gas Limit does not require system upgrades or code modifications. As long as the PoS nodes continue to signal support when generating blocks, they can push the network to gradually adopt this change.
Although Ethereum has been expanding through L2 and Rollups in the past, it has also caused considerable problems. L2 has greatly weakened the value capture of ETH and is likely to lead to a situation of feudal separatism, Pi Ma, founder of Continue Capital, once said in a voice conversation.
It is imperative to expand the mainnet. At the ETHGlobal Prague conference, Vitalik said that Ethereum will expand the scale of L1 by about 10 times within a year and then take a breath before the next leap.
Ethereum’s current TPS peak has increased to about 60. It remains to be seen to what extent Ethereum will increase in the future.
summary
Ethereum is in a period of multiple changes in technology, funding, and ecology. The foundations financial reform and RD restructuring lay the foundation for its long-term development. Consensyss cooperation with sovereign wealth funds foreshadows Ethereums new role in global finance. Gas cap adjustments and ETF capital inflows inject vitality into network efficiency and market momentum.
Despite short-term selling pressure and cost disputes, Ethereums technological advantages and institutional endorsements keep it in a leading position in the crypto market. In the future, Ethereum needs to continue to work on technical optimization and community governance to meet the challenges of competitors such as Solana. 10x Research recently analyzed ETHs performance and wrote, Although we expected a wave of pullbacks a few days ago, the actual trend is far more resilient than expected. From a technical point of view, Ethereum is approaching the apex of a large triangle consolidation structure, and the final breakthrough direction may push the price to $2,000 or $3,000. This trend will be very critical and may be triggered by fundamental changes or simply the entry of a large buyer.
