Ethereum’s leadership dilemma: ‘In the process of large changes’

• Ethereum Foundation faced calls for leadership reform to address governance challenges.
• Spot market demand for Ethereum dropped 84% as Bitcoin showed resilience.

Ethereum’s [ETH] trajectory has come under intense scrutiny, with growing concerns surrounding its roadmap and governance structure.

Execs weighs in on leadership reforms

Anthony D’Onofrio, a founding member of Ethereum, took to X (formerly Twitter) to advocate for leadership reforms within the Ethereum Foundation—the organization at the heart of the blockchain’s development.

His call for change highlights the mounting pressure on ETH to address internal challenges as it navigates the complexities of sustaining its position as a leading blockchain platform.

He said,

“To ensure its future, the Ethereum Foundation must transform itself from a reactive institution into a proactive visionary force.”

Ongoing challenges within the Ethereum Foundation

Now, as Ethereum continues to face internal challenges, particularly within the Ethereum Foundation, the ETH/BTC ratio has hit alarming lows, with Ethereum revisiting levels last seen in 2016.

Surprisingly, 63.8% of all Ethereum trading days are now categorized as unprofitable.

Additionally, spot market activity for Ethereum has also seen a dramatic downturn, plummeting to just $8 billion from the $52 billion recorded during the peak of the 2021 bull market—a staggering 84% decline.

This trend underscores the urgency for ETH to find a solid “bottom”, as failure to stabilize could fuel heightened market speculation and erode sentiment further.

What about Bitcoin?

Meanwhile, Bitcoin shows signs of resilience, with macroeconomic factors like the new crypto-favorable Trump administration in the US, potentially serving as a catalyst for upward momentum.

The Choppiness Index, at a robust 62, suggests the market is primed for a decisive move, emphasizing the urgency for the trend to gain traction.

Hence, the prevailing market structure signals Bitcoin’s intent to sustain its upward trajectory in the days ahead.

What’s lies for Ethereum ahead

That being said, the Ethereum Foundation stands at a crossroads.

While its current structure facilitates coordination and progress, it also sparks friction with Ethereum’s core ethos.

Hence, to address these community concerns, the Foundation is now exploring innovative approaches to sustainability, such as staking ETH to generate operational revenue.

In fact, the organization recently announced the release of 50,000 ETH, valued at over $163 million based on current market prices as part of the DeFi program, starting with Aave [AAVE] and Safe platforms.

Even Vitalik Buterin, the creator of Ethereum, recently took to X to address community concerns.

He said,

“We are indeed currently in the process of large changes to EF leadership structure, which has been ongoing for close to a year. Some of this has already been executed on and made public, and some is still in progress.”

In conclusion, the evolution of the Ethereum Foundation’s structure will play a critical role in its future, and it’ll be interesting to see how it balances the preservation of its founding principles with rapid innovation.