Ethereum’s Scaling Evolution: Vitalik Buterin Recalibrates Layer 2 Vision as Mainnet Capabilities Surge

In a significant strategic reflection, ethereum co-founder Vitalik Buterin has publicly reassessed the long-term role and necessity of Layer 2 (L2) scaling solutions, prompted by the Ethereum mainnet's own rapidly accelerating scalability roadmap. Speaking on social media platform X, Buterin highlighted that development on many L2 networks has not progressed as quickly as initially anticipated. This introspection comes at a pivotal moment, as the Ethereum base layer (L1) itself is on the cusp of major throughput enhancements, with planned gas limit expansions set for implementation by 2026. Buterin pointedly observed that "L1 itself is scaling, fees are very low," a statement that challenges the foundational premise that L2s are the *primary* path to scalability. This suggests a potential paradigm shift where L2s may need to evolve beyond their original mandate as mere transaction throughput workhorses. Their future value proposition might increasingly hinge on offering specialized functionalities, enhanced privacy features, sovereign governance models, or unique application environments that the mainnet cannot easily replicate, rather than solely competing on low transaction costs. This recalibration acknowledges the success of Ethereum's core roadmap—including the prior Merge to Proof-of-Stake and upcoming scaling upgrades like proto-danksharding—which is directly addressing the network's historical congestion and high fee issues. For investors and developers, this signals a more mature and multi-faceted Ethereum ecosystem. The narrative is moving from a simple "L2s are essential for survival" to a more nuanced landscape where a robust, scalable L1 coexists with a diverse L2 ecosystem that drives innovation in user experience and application design. This evolution could strengthen Ethereum's overall value proposition by ensuring a high-performance base settlement layer while fostering experimentation at the edges, potentially making the network more attractive for large-scale institutional and mainstream adoption. The coming years will likely see a re-rating of L2 projects based on their technological differentiation and unique offerings, rather than just their transaction cost savings.

Vitalik Buterin Reconsiders Ethereum L2 Role as Mainnet Scaling Accelerates

Ethereum co-founder Vitalik Buterin has reignited debate about Layer 2 solutions' purpose as the blockchain's base layer achieves unprecedented scalability. Speaking on X, Buterin noted L2 development has lagged expectations while Ethereum mainnet prepares for major gas limit expansions by 2026.

The admission marks a strategic pivot. "L1 itself is scaling, fees are very low," Buterin wrote, suggesting L2s must evolve beyond their original "branded shards" concept. This comes as Ethereum's base LAYER achieves throughput once expected from rollups.

Buterin proposes reimagining L2s as a "full spectrum" of solutions rather than mandatory scaling components. The remarks signal Ethereum's maturation - where mainnet improvements may reduce reliance on auxiliary networks.

Bitmine Chair Tom Lee Defends ETH Treasury Strategy Amid Market Downturn

Bitmine Immersion Technologies chairman Tom Lee dismissed criticisms of the company's Ethereum treasury strategy, framing unrealized losses as an inevitable byproduct of tracking ETH's price across market cycles. The rebuttal came after social media accusations that Bitmine's $6.6 billion paper loss on ETH holdings could create future selling pressure.

"These tweets miss the point of an Ethereum treasury," Lee countered, emphasizing Bitmine's mandate to mirror ETH's performance rather than mitigate volatility. The exchange underscores the broader tension between crypto purists and institutional vehicles as Ethereum ETFs face increased scrutiny.

Aave Consolidates Operations Under Aave Labs, Retires Avara Brand and Family Wallet

Aave founder Stani Kulechov announced the decentralized finance protocol is winding down its Family iOS wallet and retiring the Avara brand, consolidating operations entirely under Aave Labs. The strategic retreat from consumer wallet products reflects a bet that mainstream users will adopt crypto through focused financial applications rather than general-purpose explorers.

Family will stop onboarding new users from April 1, with existing customers able to access the app until April 2027 before transitioning to Aave’s infrastructure. The shift follows Aave’s recent transfer of Lens Protocol stewardship to Mask Network, marking a dramatic narrowing of focus after years of ecosystem expansion.

"We are winding down the Family iOS wallet. Family Accounts will continue to power the AAVE App as part of Aave’s infrastructure, helping bring millions of users into DeFi," Kulechov stated. The decision reflects lessons learned from attempting to onboard users through different product approaches.

Ethereum Network Activity Defies Price Slump as Active Addresses Approach Record Highs

Ethereum's blockchain activity shows remarkable resilience amid market turbulence. The 100-day moving average of active addresses has surged to NEAR all-time highs, even as ETH prices face downward pressure. This divergence between network usage and valuation mirrors patterns seen during previous accumulation phases.

Analysts observe that sustained address growth during price declines often precedes significant rallies. The current activity spike suggests strong fundamental demand for Ethereum's network capabilities, particularly in decentralized finance and NFT sectors. Such on-chain metrics frequently lead price action by weeks or months.

CryptoQuant data reveals the active address metric peaked at 795,000 in early 2025 before the recent pullback. Current levels around 715,000 remain 42% above the 2024 low. 'When users keep transacting through downturns, it signals real utility rather than speculation,' noted Maartunn in the report.