TL;DR
- Vitalik Buterin anticipates a 10x boost in Ethereum’s capabilities within the next 12 to 18 months, prioritizing security and decentralization.
- ETH ETFs brought in $564.18 million in May, their largest capital inflow in 2025, as interest in scaling solutions continues to grow.
- On-chain activity remains weak. The volume of ETH burned dropped from 4,274 in January to under 1,000 in May, reflecting lower network usage.
At ETHGlobal Prague 2025, Vitalik Buterin unveiled a plan to multiply Ethereum Layer 1’s capacity by ten within a 12 to 18-month timeframe.
An Essential Upgrade
The proposal aims to improve the network’s performance without compromising decentralization or validator security. Development efforts will focus on upgrades to stateless nodes and adjustments within the Ethereum Virtual Machine, targeting faster transaction processing and reducing current congestion levels.
Buterin made it clear this won’t be an immediate rollout. The team will proceed gradually, prioritizing ecosystem stability. Once the initial phase is completed, a technical review will follow, and if necessary, a hard fork will be introduced to address pending issues. This upgrade would mark a pivotal stage in the network’s infrastructure before considering larger-scale changes.
The announcement aligns with Ethereum’s recovery in institutional markets. In May, ETH ETFs recorded their highest capital inflow of 2025, with $564.18 million, reversing the outflows seen in March and pushing total managed assets to $9.45 billion. This trend also reflects growing interest in scaling solutions at the protocol level and proposals to improve network efficiency without relying solely on Layer 2 systems.
Ethereum’s On-Chain Activity Keeps Dropping
Despite the rebound in institutional product flows, on-chain activity remains subdued. The volume of ETH burned — an indicator of transaction volume and actual network use — dropped from 4,274 units in January to under 1,000 last month. This decline highlights the need for structural upgrades to sustain demand once market momentum returns.
In terms of price action, Ethereum (ETH) is struggling against resistance near $2,700 while holding a support zone around $2,500. Technical indicators show mixed signals, with a neutral RSI and a bearish MACD crossover. Without a recovery backed by higher volume, ETH could either remain range-bound or face downward pressure in the short term
