Ethereum Leadership Change: A Flow-Driven Analysis of the EF Shake-Up

The Ethereum Foundation's leadership is changing hands, with co-executive director Tomasz Stańczak stepping down at the end of February 2026. He will hand the co-ED role to Bastian Aue, a move that formalizes a broader strategic pivot. This shift comes after a period of intense community pressure, with critics pointing to a perceived disconnect between the EF and core developers, alongside frustrations over ETH's underperformance against the market.

Growing criticism forced the foundation to restructure, replacing former executive director Aya Miyaguchi. Detractors called for a more technical and aggressive leader, arguing the EF wasn't doing enough to push the ecosystem forward. The new management, led by Stańczak and Hsiao-Wei Wang, was appointed to ensure "balanced execution" and a clearer strategic path.

The new co-EDs have outlined a simplified roadmap focused squarely on scaling the Layer 1. Their three-point plan targets scaling blobs, improving the mainnet, and enhancing user experience. This refocus on core L1 scaling is a direct response to the trend of activity migrating to Layer 2s, aiming to bring more revenue back to the base layer.

On-Chain Fundamentals: The Network's Underlying Flow Strength

The network's underlying flow strength is undeniable. In the fourth quarter of 2025, stablecoin transfer volume on Ethereum hit a record $8 trillion, nearly doubling from just over $4 trillion in the second quarter. This surge in transactional activity, alongside a 48% year-over-year jump in daily transactions, points to a growing role as a settlement layer for digital dollars, not just speculative trading.

Ethereum's dominance in this critical market is also at an all-time high. The network controls over 50% of the $315 billion stablecoin market, with its own stablecoin market cap recently rising to $158 billion. This commanding share means that liquidity and usage on Ethereum directly influence the broader DeFi ecosystem, often setting the pace for altcoins.

The network's security and capital lock-up are also at record levels. The ETH staking ratio just crossed 30%, hitting an all-time high. This indicates a significant amount of capital is committed to securing the network, which supports the stability and growth of its on-chain activities, from payments to real-world asset tokenization.

Price Action & Holder Behavior: The Market's Verdict

Ethereum is trading below $2,000, down over 30% year-to-date. This sharp decline has pushed major holders into significant unrealized losses, with BitMine's paper losses now exceeding $7 billion. The price weakness has also taken ETH below the average entry levels of both ETF holders and accumulation addresses, creating a potential floor for future buying.

Despite the drawdown, data suggests major holders are accumulating rather than exiting en masse. The exchange net position change indicator has turned negative, signaling more ETH is being withdrawn from exchanges for long-term holding. Analysts note that whale accumulation is proceeding even more aggressively, with firms like BitMine actively purchasing and staking large amounts of ETH.

The bottom line is a market in compressed conviction. Prices reflect stress, but capital behavior shows structural commitment. Whether this resilience holds will depend on Ethereum's ability to reclaim key technical levels in the weeks ahead.