Ethereum maintains its leadership in the blockchain space due to high earnings despite recent upgrades and internal changes.
Ethereum's Resilience Amid Dencun Upgrade
In 2024, Ethereum earned $2.48 billion in fees despite the Dencun upgrade aimed at reducing transaction costs on Layer 2 networks. Analysts predicted a drop in mainnet revenue, yet Ethereum's fees continued to rise. In Q1 2024, the network earned $1.17 billion thanks to increased on-chain activity and airdrop programs.
Ethereum Foundation Faces Scrutiny
Despite network growth, the Ethereum Foundation faces scrutiny over management and internal changes. Ethereum co-founder Vitalik Buterin announced leadership changes to improve communication, yet this sparked tension. Developer Eric Conner left the Foundation, sparking debate about the future of the fund.
Growing Concerns Over Ethereum Foundation’s Governance
Criticism of the Ethereum Foundation centers on its governance model and spending practices. The Foundation holds around $800 million in Ether but is criticized for lack of transparency. The community expresses dissatisfaction with inefficiency, urging a focus on user needs.
Despite challenges and criticism, Ethereum continues to display leadership and resilience in the blockchain industry. Community viewpoints towards the Ethereum Foundation remain a key factor for the network's future.
