Ethereum-Powered SharpLink Gaming: A Rollercoaster Ride of 2,000% Surge and 30% Correction

SharpLink Gaming (SBET) experienced a dramatic week, with its shares skyrocketing by 2,000% following the announcement of a $450 million fundraising effort to launch an ethereum (ETH) treasury strategy. The involvement of Ethereum co-founder Joseph Lubin as board chairman added significant credibility to the initiative. However, the stock retraced 30% in early trading on June 3, 2025, as investors took profits after the historic rally. This volatility highlights the market’s bullish sentiment toward Ethereum-based strategies in the gaming and finance sectors, despite short-term corrections. The company’s bold move into crypto treasury management could set a precedent for other firms looking to leverage blockchain technology for financial innovation.

SharpLink Shares Retreat After Historic Rally Fueled by Ethereum Treasury Strategy

SharpLink Gaming (SBET) shares tumbled 30% in early trading Monday, retracing a fraction of last week’s staggering 2,000% surge. The stock had catapulted from under $3 to over $100 after announcing a $450 million raise to launch an Ethereum (ETH) treasury strategy, with Ethereum co-founder Joseph Lubin joining as board chairman.

The company confirmed the fundraising closure Monday, issuing 69 million restricted shares. Market observers note only 2 million shares remain tradable, creating extreme volatility. Pharmaceutical entrepreneur Martin Shkreli highlighted the lock-up period, stating most shares won’t be registered for months.

This liquidity crunch amplified last week’s parabolic move. The strategic pivot toward Ethereum treasury management reflects growing institutional interest in crypto-native corporate strategies, though thin floats remain a double-edged sword for volatility.

ETH Rebounds Sharply From Intraday Lows, Signals Bullish Shift as $2,500 Holds

Ethereum demonstrates resilience amid economic headwinds, maintaining support above $2,500 despite market volatility. The asset rebounded from $2,472.84 to $2,547.92, with technical momentum intact as higher lows persist. Strong demand around the $2,486-$2,490 zone underscores buyer conviction.

Trade tensions between the U.S. and China, along with rising Treasury yields, have pressured risk assets, yet ETH has outperformed. Spot ETF inflows, totaling $3 billion over three weeks, highlight sustained institutional interest. Resistance NEAR $2,550 caps upside, but the price action reflects solid bullish momentum.

The 24-hour range of $67.47 (2.72%) featured a mid-day recovery, with strong support confirmed at $2,486-$2,490. Resistance near $2,540-$2,547 saw profit-taking, but a decisive bounce from $2,488 reinforced bullish sentiment. Late-session consolidation did little to dampen the upward trajectory.

Consensys Acquires Web3Auth to Enhance MetaMask Onboarding

Consensys, the Ethereum infrastructure firm behind MetaMask, has acquired Web3Auth to streamline wallet onboarding and address seed phrase vulnerabilities. The deal aims to modernize user experience by integrating Web3Auth’s login and recovery tools, which are already used across 8,200 decentralized applications.

Internal data reveals 35% of MetaMask users fail to back up seed phrases, risking permanent fund loss. The integration aligns with the industry’s push toward account abstraction, offering Web2-like ease without compromising security.

Joseph Lubin, Consensys CEO and Ethereum co-founder, emphasized the MOVE as a step toward frictionless onboarding and broader accessibility. Financial terms remain undisclosed.

SharpLink Gaming Adopts Ethereum as Primary Treasury Asset with $425M Raise Backed by Galaxy Digital

SharpLink Gaming, Inc. (Nasdaq: SBET) has positioned Ethereum at the Core of its treasury strategy after securing $425 million in a private funding round. The move, supported by Galaxy Digital and Consensys Software Inc., marks one of the largest Ethereum treasury allocations by a publicly traded company.

The funding round attracted prominent crypto investors including ParaFi Capital, Electric Capital, and Pantera Capital. Ethereum co-founder Joseph Lubin joined SharpLink as Chairman, deepening ties between the gaming firm and the Ethereum ecosystem.

SharpLink plans to leverage Ethereum’s staking and DeFi capabilities through partnerships with Galaxy Asset Management and ParaFi Capital. CEO Rob Phythian emphasized the strategic alignment between SharpLink’s market position and Consensys’ blockchain expertise.

Ethereum Foundation Restructures R&D Team Amid Strategic Shift

The Ethereum Foundation has initiated layoffs within its research and development division as part of a broader restructuring effort. The Switzerland-based nonprofit aims to refocus on critical protocol challenges, including base-layer scaling, blobspace expansion, and user experience improvements.

Leadership changes precede this move, reflecting mounting pressure to address technical hurdles that could threaten Ethereum’s market position. The rebranded ’Protocol’ team will prioritize CORE infrastructure development while shedding an undisclosed number of staff members.

’These changes set us on a more responsive path,’ the Foundation stated, encouraging affected personnel to remain within the Ethereum ecosystem. The restructuring underscores the competitive pressures facing blockchain platforms as they evolve beyond foundational technology into scalable networks.

Ethereum Foundation Restructures to Sharpen Protocol Focus Amid Criticism

The Ethereum Foundation has initiated a strategic restructuring, reducing staff within its research and development teams to prioritize core protocol challenges. The move follows sustained criticism of the organization’s management and long-term vision.

Protocol scalability, blobspace capacity expansion, and user experience improvements now FORM the trifecta of priorities under the streamlined ’Protocol’ division. While the foundation declined to specify headcount reductions, the restructuring signals a decisive shift toward addressing Ethereum’s technical bottlenecks.

Market observers view this as a necessary recalibration for maintaining Ethereum’s dominance as layer-2 solutions proliferate. The foundation’s Swiss-based leadership appears to be trading breadth for depth, concentrating resources on fundamental infrastructure challenges.