Buterin Backs Ethereum Ossification, Firms Stockpile ETH

Published: 2025-11-20 03:03:16 |

At Devconnect in Buenos Aires, Vitalik Buterin called for greater Ethereum ossification, emphasizing stability of the base layer to reduce protocol risk. He proposed locking down the consensus layer while enabling flexibility in the Ethereum Virtual Machine and application layers. This shift caters to an ecosystem securing hundreds of billions in assets and processing trillions annually. Major firms such as BitMine Immersion Technologies, SharpLink Gaming, Ether Machine, and even the Ethereum Foundation now hold large ETH treasuries. Coinbase, Bit Digital, and 180 Life Sciences also report six-figure ETH positions. A stable, fixed core layer boosts predictability for staking yields and safeguards large balance sheets. Developers will migrate experimental features to layer-2 solutions like rollups, preserving the Layer-1 chain’s integrity. However, Ethereum faces a quantum deadline around 2028, requiring a transition to quantum-resistant cryptography. The upcoming Fusaka upgrade on December 3 will test Ethereum’s ability to implement critical changes while ossifying the base protocol. Ethereum ossification marks a maturity turning point, balancing long-term security with innovation at the edges.

Bullish

This news is bullish because Ethereum ossification reduces protocol risk and enhances predictability, encouraging institutional investment. As major firms accumulate ETH treasuries, staking rewards and stable yields become more attractive. A fixed Layer-1 will shrink the attack surface and support long-term growth. The upcoming Fusaka upgrade demonstrates Ethereum’s capacity for coordinated upgrades. Historically, increased protocol stability, like Bitcoin’s rarity and fixed supply, has underpinned bullish sentiment. In the short term, clearer upgrade paths and reduced surprises may spur buying ahead of the Fusaka hard fork and quantum-resistant transition. Long term, ossification solidifies Ethereum’s role as a secure settlement layer, likely sustaining demand for ETH from institutions and developers.