Institutions break up with Ethereum but keep ETH on the hook
Ethereum is experiencing significant challenges, with base-layer usage declining and core metrics nearing multi-year lows. Co-founder Vitalik Buterin has proposed a radical overhaul of the network's architecture. Institutional investors, including Galaxy Digital and Paradigm, are reducing their Ether holdings, with Galaxy moving 65,600 ETH to Binance and Paradigm transferring 5,500 ETH to Anchorage Digital. Despite these sell-offs, some investors view the downturn as a buying opportunity. Ethereum's inflation has increased since April 2024, reversing previous deflation trends due to lower transaction fees. Buterin's RISC-V proposal aims to enhance network efficiency, signaling potential limitations in the current architecture. The Ethereum Foundation plans to focus on layer-1 scaling solutions amid concerns over the impact of layer-2 networks on base-layer revenue. Standard Chartered Bank has revised its 2025 Ether price estimate downward, citing structural declines in Ethereum's ecosystem.
