Ethereum Foundation to Integrate zkEVM by 2025 for 20% Scalability Boost

Ethereum Foundation is embarking on a significant endeavor by integrating zkEVM directly into their main protocol. This bold step is aimed at enhancing scalability and privacy at the core network level, targeting 2025 completion. Key players Hsiao-Wei Wang and Tomasz Stańczak are spearheading this effort. They aim to bring technological advancements that may elevate Ethereum's capacity to handle transactions and ensure user data confidentiality. Vitalik Buterin, Co-founder of Ethereum, states: "The shift towards a Layer 1 zkEVM is a significant step for Ethereum, addressing scalability and privacy at the core of the protocol." Market observers speculate that this integration will promote more robust institutional adoption. With the network's upgrades, Ethereum could maintain or even expand its current dominance in the developer and market ecosystems. The financial landscape may experience shifts with blockchain becoming more enterprise-friendly. Institutions are likely eyeing increased engagement as Ethereum progresses in addressing scalability hurdles and enhancing privacy protections by 2025. The initiative excels as a response to historical examples like the Merge, where past enhancements led to increased ETH value and activity. This new approach promises deep-rooted improvements potentially altering the blockchain’s competitive dynamics significantly.

The Ethereum Foundation has announced plans to integrate a native Layer 1 zkEVM by 2025. This significant move is aimed at transforming Ethereum's scalability and privacy, driven by its new leadership team. The project is spearheaded by co-leaders Hsiao-Wei Wang and Tomasz Stańczak, following Vitalik Buterin's step back from daily operations. The transition to zk-proofs is expected to positively influence institutional adoption and enterprise use cases. Improvements in privacy and scalability are seen as catalysts. Developer sentiment suggests enhanced user experience and efficiency for ETH holders. Integration of zero-knowledge proofs represents a technological advancement for Layer 1 networks, surpassing competitors relying on external rollups. Traditionally, major upgrades like the Merge result in volatility, but lead to increases in TVL and user adoption. This upgrade focuses on ETH but also influences Layer 2 solutions and DeFi protocol tokens. Hsiao-Wei Wang, Co-Lead, Ethereum Foundation, "Integrating zkEVM at Layer 1 is not just a technical milestone; it's an alignment with Ethereum’s mission to scale securely for global use." Potential financial outcomes include increased ETH adoption, improved security, and added pressure on competing ecosystems. Institutional interest from Cathie Wood indicates Ethereum's growing appeal as a fundamental technology choice. Historical data suggests enhanced privacy and scalability could fortify Ethereum’s market position amidst industry competition.

Ethereum staking just reached a new all-time high (ATH), with 29.44% of the total ETH supply now staked. This means nearly one-third of all ETH is currently locked in validator nodes, helping to secure the Ethereum network while earning passive income. Staking has become a popular choice for Ethereum holders since the network shifted to Proof of Stake (PoS) in 2022. Rather than selling, long-term holders are opting to lock up their ETH and earn steady rewards. This growing staking trend reflects trust in Ethereum’s future, especially from large investors known as “smart money.” Smart money refers to institutional investors, funds, and experienced crypto players. These market participants usually lead the trends, and their moves often signal where the market could be heading. The recent ATH in Ethereum staking shows these players are not looking to exit the market anytime soon. In fact, by staking their ETH, they’re removing it from circulation, which reduces sell pressure. This kind of behavior generally suggests bullish sentiment. It also points to the idea that Ethereum’s utility and ecosystem growth are more important to these holders than short-term price gains. A higher staking percentage benefits Ethereum in two big ways. First, it improves network security, since more validators are participating. Second, it reduces ETH liquidity on exchanges, which can positively impact price over time. With nearly 30% of ETH locked in staking contracts, the remaining circulating supply becomes more scarce. If demand for ETH increases — through DeFi, NFTs, or other real-world use cases — this supply squeeze could lead to upward price pressure. This move by smart money is a strong indicator that the Ethereum ecosystem continues to mature, and confidence in its long-term success remains high.