Ethereum Surges 2.321% as Foundation Restructures for Scalability

Ethereum's latest price was $2599.64, up 2.321% in the last 24 hours. The Ethereum Foundation (EF) recently announced a significant restructuring of its protocol research and development units, consolidating them under a single initiative called Protocol. This move aims to streamline efforts and focus resources on three key technical priorities: scaling the base layer, expanding blob capacity for layer-2 networks, and enhancing the user experience. The new structure is designed to accelerate the transition from research papers to production code, fostering tighter feedback loops across various development efforts.

Under the new Protocol initiative, teams will be guided by a shared roadmap that prioritizes these three areas. Tim Beiko and Ansgar Dietrichs will lead the base-layer scaling efforts, while Alex Stokes and Francesco D’Amato will oversee layer-2 throughput and blob design. Barnabé Monnot and Josh Rudolf will direct user-experience projects, with Dankrad Feist advising each track. The foundation framed this restructuring as a response to rapid advancements in zkEVM rollups, hardened layer-2 systems, and the growing demand for Ethereum as a settlement engine.

Protocol now operates with a leaner team, as some researchers and engineers departed during the reorganization. The foundation encouraged other Ethereum companies to recruit these departing members. Team leads under the new structure carry explicit responsibility for code quality and peer review, and they must demonstrate measurable progress on the three priorities at regular checkpoints. The new structure also adjusts Ethereum’s internal governance forums, with Protocol proposing new venues for community input on hard-fork timing, security reviews, and blob pricing policy. The goal is to translate on-chain signals and developer feedback into releases without drift.

Protocol has opened searches for a user-experience lead and a performance-engineering lead, inviting additional applicants with expertise in kernel-level or cryptography. The group plans joint workshops with external client teams and layer-2 builders to refine execution-layer changes and blob-compression techniques before the next network upgrade. Protocol begins operating under the new framework immediately, marking a significant shift in how Ethereum’s development efforts are organized and executed.

Ethereum’s co-founder Vitalik Buterin has emphasized the need for significant scalability of the layer-1 network amidst the rise of layer-2 solutions. At ETHGlobal Prague 2025, Buterin stated that the Ethereum network is projected to enhance both its cost efficiency and transaction speed by tenfold within the next year. This forecasted growth is crucial as the Ethereum blockchain faces increasing competition from faster networks like Solana and newer entrants. Buterin’s vision for a tenfold increase in scalability aims to alleviate congestion and high transaction fees, enabling smoother operations within the expansive ecosystem of decentralized finance (DeFi) platforms and non-fungible tokens (NFTs).

Layer-2 networks like Arbitrum and Optimism serve as critical enhancements to Ethereum’s infrastructure, optimizing transaction speeds and reducing costs. However, there are concerns that these solutions might siphon off market capitalization from Ethereum, hindering its capacity to reach its full potential. Buterin acknowledged this tension, stressing the importance of pursuing a balanced approach to scaling. While some in the Ethereum community envision aggressive scaling strategies, Buterin advocates for caution, preferring incremental improvements to ensure the network remains robust and decentralized. His perspective suggests a preference for safe scaling, ensuring the network’s stability and decentralization.

As Ethereum prepares to implement strategic enhancements to its layer-1 architecture while supporting layer-2 innovations, the original blockchain looks poised to adapt to an increasingly competitive landscape. With Buterin’s leadership and the continued development of both layer-1 and layer-2 solutions, the Ethereum blockchain is set for transformative changes that could reshape the landscape of decentralized applications and financial services. The future of Ethereum hinges on its ability to scale effectively while maintaining its foundational principles, ensuring a balance between innovation and stability.