Ethereum’s Base Network Takes Principled Stand Against Market Manipulation

In a significant move for the broader ethereum ecosystem, Jesse Pollak, the lead of Coinbase's Layer 2 network Base, has publicly and unequivocally rejected calls for the platform to engage in behind-the-scenes token price support. Pollak has labeled such practices as both unethical and illegal under U.S. securities law, drawing a clear line in the sand for decentralized platform governance. This firm stance comes at a critical juncture, as the Base network, built on Ethereum, faces growing community scrutiny over the perceived lack of breakout token successes on its platform. Pollak's comments highlight a foundational tension in the crypto space: the balance between fostering a vibrant ecosystem and adhering to regulatory and ethical standards. By prioritizing transparency and lawful conduct, Base is positioning itself not just as a scaling solution, but as a principled actor within the Ethereum landscape. This decision, while potentially disappointing to speculators seeking artificial pumps, reinforces a long-term, compliance-focused approach that could bolster institutional confidence in Ethereum's Layer 2 future. It signals a maturation phase where sustainable, organic growth driven by utility and innovation is valued over short-term price action engineered by platform insiders. For Ethereum, whose value is intrinsically linked to the health and legitimacy of its scaling solutions, Base's commitment to operating within legal frameworks is a net positive, potentially setting a precedent for other L2 networks. The move underscores a broader industry shift towards accountability, where the future of decentralized finance hinges on building trust through transparency rather than covert market operations.

Base Rejects Token Price Support as Pollak Calls Practice Illegal

Jesse Pollak, lead of the Base network, has firmly rejected calls for behind-the-scenes token price manipulation, labeling the practice as both unethical and illegal under U.S. law. His statement comes amid growing community frustration over the lack of standout tokens on the LAYER 2 platform.

Pollak emphasized Base's commitment to transparency, stating the network WOULD not engage in private market coordination to influence token valuations. "Manipulating prices would erode trust and likely violate regulations," he said. The stance aligns with Base's positioning as an open ecosystem for builders.

Some community members expressed disappointment, arguing Base hasn't adequately promoted high-potential projects. Others countered that organic growth prevents artificial bubbles. The debate highlights tensions between developer expectations and Base's neutral infrastructure role.

Vitalik Buterin Calls for Reset in Crypto Social Landscape Following X Ban Fallout

Ethereum co-founder Vitalik Buterin and Mask Network founder Suji Yan recently dissected the persistent struggles of decentralized social networks. Despite years of experimentation, adoption remains elusive. "Almost no new social platforms have truly broken through at scale," Buterin observed, highlighting the chicken-and-egg problem of user acquisition.

The Core issue lies in premature tokenization, according to Buterin. Many projects mistakenly assume financialization can solve social challenges. "If you start from social itself, the real issue is usually creator incentives," he noted, criticizing how token-driven models often reward speculation over quality content.

Suji Yan framed recent platform bans as part of a gradual migration pattern rather than a sudden exodus. "The realistic path is moving from centralized platforms to semi-centralized models, and only then toward full decentralization," Yan explained, drawing parallels to DeFi's evolutionary trajectory. This gradual shift explains growing interest in intermediary tools like protocol layers and content aggregators.

Ethereum Faces Short-Term Bearish Signals Amid Long-Term Bullish Outlook

Ethereum's price action reveals a tension between immediate technical risks and enduring bullish potential. A 3-day bear flag pattern suggests possible downside toward the $1,666 demand zone, with weak volume during consolidation indicating tepid buying interest. The failed retest of former support-turned-resistance reinforces near-term caution.

Yet the macro perspective remains constructive. Ethereum maintains critical trendline support that keeps ambitious $10,000 targets viable. Market participants appear divided—short-term traders eye the liquidity grab below $1,600 while long-term holders focus on the asset's structural advantages.

Key levels to watch include the $1,600 psychological support and overhead resistance NEAR recent highs. As one analyst notes, 'Flags fly half-mast before new trends emerge'—a reminder that current consolidation may precede Ethereum's next major move.

Ethereum Fees Plummet to 2017 Lows Amid Record Network Activity

Ethereum transaction fees have collapsed to levels unseen since May 2017, with users now paying less than $0.0002 for simple transfers. This dramatic reduction follows December 2025's Fusaka hard fork, which tripled the block gas limit—a strategic upgrade that expanded throughput without compromising network security.

The timing proves fortuitous. On January 16, Ethereum processed a record-breaking 2.9 million daily transactions, demonstrating how infrastructure improvements are absorbing demand that would have previously caused crippling congestion. Unlike past cycles where fee spikes accompanied usage surges, the 7-day moving average shows a steady decline—a testament to the network's maturing scalability.

Market observers note the divergence between Ethereum's declining fee revenue and its rising utility. While some Layer 1 competitors tout lower costs, Ethereum continues dominating developer mindshare and institutional adoption. The network's ability to maintain sub-cent fees during peak usage may reshape investor calculus about its long-term value capture.