Ethereum Leaders Address Network Challenges, Emphasize Layer-2 Scaling and Long-Term Strategy Amid Criticism

Ethereum faces mounting criticism over its performance, declining ETH price, developer migration, and reliance on Layer-2 solutions. Researcher Dankrad Feist previously warned that Ethereum risks losing relevance without aggressive Layer-1 scaling and protocol upgrades. He advocated increasing the gas limit, parallel execution, and enhanced censorship resistance, warning that slow development could see Ethereum cede market share to faster rivals. At Consensus 2025, Ethereum Foundation leaders, including Paul Brody of EY and Josh Stark, responded by reaffirming the network’s long-term value and innovation. They highlighted transaction capacity reaching 300–450 million daily and sub-cent Layer-2 fees. Despite concerns about security risks and potential fragmentation from Layer-2 rollups, leadership defended Ethereum’s modular, rollup-centric approach as vital for scalability and ecosystem leadership. The Foundation also announced leadership changes, aiming to strengthen governance. While ETH has underperformed some competitors, confidence remains that Ethereum’s fundamentals and network upgrades will help regain market recognition. The event underscores the critical need for scaling solutions and robust governance to maintain Ethereum’s blockchain leadership.