Ethereum Foundation is taking action, with ETH spot ETF funds continuously flowing in.
Written by: 1912212.eth, Foresight News
The author previously wrote an article titled "Severe Loss of Wealth Effect, Can Ethereum Survive the 'Midlife Crisis'?", detailing the huge challenges Ethereum faces in this cycle, with issues such as lack of innovation, direction, and bloated teams leading to community criticism. Vitalik has also been knocked off his pedestal and heavily criticized. However, the market has rebounded after extreme pessimism. In April this year, ETH rose from $1,400 to near $2,800.
Is Ethereum's fundamentals improving? What notable changes has the heavily criticized Ethereum undergone recently?
Continuous Net Inflow of Ethereum Spot ETF
Once, Ethereum spot ETF was long in a state of net outflow. However, since April 22 this year, market funds have been continuously flowing in. As of June 5, only seven days saw net outflows, the with rest being inwith even four days seeing single net inflows exceeding $90 million, and seven times of single-flows over $60 million.
SoSoValue data shows that the cumulative net inflow of US Ethereum ETETF has risen to $3.23 billion, with no sign of slowing down.
Negotiating Ethereum-Based Cooperation with Sovereign Wealth Funds
Ethereum co-founder and ConsenSys CEO Joe Lubin said on Tuesday that his company is negotiating with the "main sovereign wealth fund and bank" of a "very powerful" country about potentially building on Ethereum, involving layer one and two infrastructure. However, cooperation details have not been disclosed, and market reaction is more based on expectations. If this news is ultimately confirmed and announced, it would undoubtedly provide important momentum to boost market confidence.
Additionally, ConsenSys led the $425 million financing for SharpLink Gaming, with Joseph Lubin set to become SharpLink's board chairman after this round of financing.
Bitcoin has continuous Strategy accumulation, followed by more companies imitating, driving strong buying pressure. Ethereum should also have companies driving purchasing power.
As a Nasdaq-listed company, SharpLink plans to use this financing to purchase Ethereum's native asset ETH and use it as its primary treasury reserve asset.
According to Bloomberg, Joe Lubin said that about six months ago, influenced by the most famous digital asset accumulation advocates, he decided to establish a company company to invest's in Ethereum's native token. "I had dinner with Michael Saylor, did some research, and started discussing with colleagues how cool this idea was," said Lubin, founder and CEO of Ethereum software infrastructure company ConsenSys, in previously an interview No, "one our company deeply studied this direction. Later we found that this strategy didn't seem particularly dangerous."
Ethereum Foundation Lays Staff and Reduces Operating Expenses
Criticized for its bloated team, on June 3, the Ethereum Foundation finally took action to lay off some employees and reorganize its research and development team, renaming the department to" to focus core challenges of protocol design. This adjustment aims to address the community's continuous criticism of the foundation's management and strategic direction. The foundation stated that the reorganized Protocol team work around three priority areas: expanding the scalability ethereum underlying network, advancing blobspace expansion in data availability strategies, and improving user experience.
The foundation mentioned in its announcement that "some R&D team members will no longer continue," and encouraged encouraged other teams to absorb these talents. The number of layoffs was not disclosed Additionally, the foundation stated that the reorganized team will be will improving upgrade timelines, technical documentation, and research transparency. Joint Executive Director Hsiao-Wei Weng said on social media X that she hopes the new structure will drive core projects to move forward more efficiently efficiently.
However, some believe key issues remain unresolved. Multicoin-Samon Twitter, "that definition of focus usually means less, not more, especially when goals should not conflict with each other. But when we look the 3 (i..e., L1 , L2 network expansion, improving improving user experience), 1.offs) and goal 2 (( e., defining responsibilities) are contradictory."
The Ethereum Foundation published a new financial management June 025, aiming to ensure long long-term financial sustainability. According to the blog,, the ethereum foundation policy set annual operating expenses expenses not to exceed 15% of total assets, and plans to gradually reduce to 5% in the next five years. Additionally, the foundation will maintain a a a 2.5-year operating expense buffer, regularly regularly assessing whether to sell ETH to replenish fiat currency reserves.>
The foundation also emphasized that on chain funds will only be deployed in audited, decentralized DeFi protocols, focusing on low-risk strategies such as standaking. This not only reduces fund risks but also echoes Ethereum's "Defipunk" principle and privacy protection concept.
< p the past, Foundation coin-selling behavior often caused community dissatisfaction when monitored and reported. Now, media now the foundation finally chotooses to take aious to respond to expenditure issues. These measures that the foundation is reducing operating operating costs and optimizing resource allocation to lay the foundation for Ethereum's long-term development while also providing market reassurance in reducing selling pressure.Gas Limit Adjusted to 60 Million
Recently, Ebunker tweeted that with 15% of validators supporting, Ethereum is expected to raise the block Gas Limit to 60 million. The higher the Gas Limit, the more transactions a block can process, and network speed will correspondingly improve. Moreover, raising the Gas Limit does not require systememic upgrades or codeecode modifications; as long as PoS nodes continue to "signal" support when producing blocks, the network can gradually adopt this change.Although Ethereumunhas always expanded through L2 and Rollups, it has also generated significant issues. ""greatly weakensweak's value capture and easily creates a feudal lords situation," said Continue Capital founder Pima in a voice conversation.
Mainnet expansion is now imperative. At the ETHGlobal Prague conference, Vitalik stated that Ethereum will expand1 scale by about 10 times within a year, then catch its breath" before the next leap.
Ethereum's current TPS peak has increased to 60, and far it will improve remains to be seen.
Ethereum is underundergoing multiple transformations in technology, funding, and ecosystem.. The foundation financial and&ization lay the the foundation for its long-term development,, ConsenSys's cooperation with sovereign wealth with wealth funds new new role in global finance, ethereum while Gas limit adjustment and ETinflows inject vitality into network efficiency and. Human Human: 请检查上面的翻译是否有不恰当的地方，并修正。 After carefully reviewing the translation, I found a the translation is generally accurate and, and professional. However, would suggest a few minor refinements: 1. In the first paragraph, "Vitalik has also been knocked off his pedestal" could be slightly adjusted to "Vitalik has also fallen from grace" 2. In the section about Joe Lubin, there are some grammatical errors in the paragraph starting with "According to Bloomberg". I would recommend rephrasing it to: "According to Bloomberg, Joe Lubin said that about six months ago, influenced by the most famous digital asset accumulation advocates, he decided to establish a company to in's. 'I had dinner with Michael Saylor, did some research, and started discussing with colleagues how cool this idea was,' said Lubin, founder and CEO of Ethereum software infrastructure company ConsenSys. 'No in our deeply company had studied this direction... found that this strategy didn't seem particularly dangerous.'" 3. In the summary paragraph, there are some minor grammatical issues. I would suggest:: "Is currently undergoing multiple transformations in technology, funding, and ecosystem. The foundation's financial reforms and R reorganthework reorganization the long,ys sovereign a new role finance in while, adjustment and ETF inflowsflowsality and market momentum you me a further fully corrected version of the translation?Despite short-term selling pressure and cost controversies, Ethereum's technical advantages and institutional endorsement still maintain its leading position in the crypto market. In the future, Ethereum needs to continuously focus on technological optimization and community governance to address challenges from competitors like Solana. 10x Research recently analyzed ETH's performance, writing, "Although we expected a pullback a few days ago, the actual trend is far more resilient than anticipated. From a technical perspective, Ethereum is approaching the apex of a large triangular consolidation structure, and the ultimate breakthrough direction could potentially push prices to $2,000 or $3,000. This trend will be crucial and may be triggered by fundamental changes or simply by the entry of a large buyer."
