Ethereum continues to lead the blockchain market despite the Dencun upgrade, showing significant growth in transaction fees.
Ethereum's Success Amid the Dencun Upgrade
In 2024, Ethereum earned $2.48 billion, making it the highest-earning blockchain. The Dencun upgrade aimed to reduce transaction costs on Layer 2 networks. Contrary to expectations, Ethereum's earnings grew by 3% compared to 2023. This was Ethereum's most successful quarter in two years, fueled by active airdrop programs and increased on-chain activity.
Challenges for the Ethereum Foundation
Despite the network's success, the Ethereum Foundation faces scrutiny for its management. Vitalik Buterin recently announced leadership changes to improve interaction with the ecosystem, yet internal tensions emerged, like Eric Conner's departure following Buterin’s refusal to overhaul leadership.
Governance Issues at the Ethereum Foundation
Criticism of the Ethereum Foundation has grown due to opaque governance and spending practices. While meeting several high-level goals, some argue the foundation should focus more on user needs. The transparency of its governance raises concerns among community members.
Despite current challenges within the Ethereum Foundation, Ethereum remains a leader in the industry. Key future challenges lie in improving the foundation's governance and processes to sustain growth.
