In 2025, Ethereum, the top altcoin, saw its market performance fall short of forecasts. However, the network underwent remarkable internal evolution. This year marked a shift in leadership at the Ethereum Foundation, alongside pivotal protocol advancements and a renewed focus on security and interoperability. The developer community pushed the foundation to rethink its governance and strategic direction, leading to significant protocol changes, irrespective of Ethereum’s market price.
What Prompted Structural Changes?
At the start of 2025, the Ethereum Foundation faced scrutiny over its direction. Calls for strong leadership brought internal disputes to light, and by February, changes were already underway. Aya Miyaguchi became president, while co-executive directors Hsiao-Wei Wang and Tomasz K. Stańczak were appointed. Danny Ryan led the newly formed Etherealize marketing unit as the foundation streamlined its R&D and merged teams, prioritizing core protocol elements through strategic layoffs.
How Did Technological Developments Shape Ethereum?
May’s Pectra update introduced important technical reforms, combining Prague and Electra advances via EIP-7702. This update featured account abstraction on the mainnet, raised validator stakes to 2,048 ETH, and expanded data capacity. Wallet providers adopted smart account flows quickly, as seen by the surge in new authorization transactions. The “Trillion Dollar Security” initiative launched concurrently to address security and user vulnerabilities, aiming to establish Ethereum as a fundamental financial platform.
As summer approached, focus shifted to the Fusaka update. Vitalik Buterin highlighted Fusaka’s PeerDAS scheme, which promises to boost Layer-2 scalability. The dAI initiative was also introduced to make Ethereum a central AI infrastructure, with a push toward decentralized AI applications and cross-rollup messaging frameworks within the Layer-2 ecosystem.
Privacy enhancements gained momentum throughout the year. The foundation’s roadmap detailed improvements in privacy processes, with the newly formed Privacy Cluster team steering these efforts. Autumn saw the Kohaku proposal layout a strategy for privacy-focused applications that maintain auditability.
November saw an increase in the block gas limit to 60 million, with Fusaka being swiftly implemented. As the year concluded, the “Hegota” update slated for 2026 was announced, cementing the achievements of Pectra and Fusaka.
Key takeaways include:
- Leadership restructure initiated a shift in governance and strategy.
- Pectra updated the protocol with increased validator stakes and smart account flows.
- Fusaka set the stage for enhanced scalability and interoperability across Layer-2 networks.
- Ethereum’s focus broadened to include AI integration and vibrant privacy advancements.
Aya Miyaguchi commented on the transformation:
“Our leadership reshuffle and technical advances underscore Ethereum’s commitment to evolving as a robust and secure network.”
