The Ethereum Foundation (EF) is actively responding to community feedback and considering adjustments to its operational direction. Qureshi noted that the EF leadership is seriously contemplating how to learn from other successful cases, particularly the Solana Superteam model, shifting its focus from pure research to promoting project development and investment activities.
(Background: Ethereum has no hope? All-protocol revenues fall out of the top 20; Analysts warn: The market regards ETH merely as a “Gas token” rather than an asset.)
In this bull market, Ethereum’s price and ecosystem have been thoroughly neglected by the market. High gas fees and stagnant ecosystem development have led investors to turn to chains like Solana, BNB Chain, and Base, with Ethereum’s price recently hovering below $2,000. In this dire situation, the Ethereum Foundation seems to have become a target for investor frustration. Despite the EF’s attempts to implement a series of reform plans during this period, the price and ecosystem of Ethereum still have not seen significant changes.
Further Reading: Ethereum Foundation’s Reforms Criticized as “Changing Soup but Not the Medicine,” Vitalik Confesses Failure to Female Fans: “We Need Young Blood; OGs Are Tired.”
In this context, according to a report by CryptoSlate, Haseeb Qureshi, managing partner of the crypto investment firm Dragonfly, revealed that the Ethereum Foundation (EF) is actively responding to community feedback and considering adjustments to its operational direction. After meeting with EF members at ETH San Francisco, he stated:
“The organization has felt the urgency for change internally and recognizes that the cryptocurrency environment has undergone significant changes since 2020.” Qureshi pointed out that the EF leadership is seriously contemplating how to learn from other successful cases, particularly the Solana Superteam model, shifting its focus from pure research to promoting project development and investment activities:
“The Ethereum leadership has received a lot of criticism recently, and I want everyone to know that this criticism has indeed had an effect. They are listening and deeply considering how to adjust their strategy. This is an important learning moment for them.” Additionally, Qureshi mentioned that he has also noticed that the EF leadership is now more willing to embrace external ideas, beginning to break through the mindset of ‘if we didn’t come up with it, we won’t use it.’
On the other hand, according to previous reports from Dongqu, Standard Chartered Bank stated in a research report released yesterday that Ethereum (ETH), as the second-largest cryptocurrency, is currently experiencing a structural decline that is expected to continue. The bank has also significantly lowered its forecast for ETH by the end of the year from the previous $10,000 to $4,000.
In the report, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, pointed out that Ethereum is currently at a crossroads. Although multiple indicators still dominate the blockchain, this dominance is continuously waning. Kendrick further noted that Ethereum’s proud Layer 2 networks, originally designed to enhance Ethereum’s scalability, have led to a $50 billion reduction in Ethereum’s market capitalization solely due to the Layer 2 network Base under Coinbase.
To stop this trend from continuing, Standard Chartered stated that the Ethereum Foundation may need to change its business direction, such as taxing Layer 2. At the same time, if the token market can achieve significant growth, Ethereum may occupy about 80% of the share in this field due to its security, which could provide some support for Ethereum.
From the information revealed by Haseeb Qureshi and the recommendations from Standard Chartered Bank, a common point can be drawn that the Ethereum Foundation needs to reform its business model. Whether the Ethereum Foundation will take further action remains to be seen.
