The Ethereum ecosystem has become the centre of heated discussions following rumours about creating a “second Ethereum Foundation” (EF). Konstantin Lomashuk, the founder of the LidoDAO staking protocol, has quickly dispelled these claims.
In an X post, Lomashuk addressed the speculations, clarifying his intentions and focusing on the need for competition within Ethereum’s development efforts.
Alongside these debates, Ethereum is also targeting a different frontier, Wall Street, where it aims to position itself as the preferred blockchain for financial institutions. These two developments reflect the dynamic evolution of Ethereum and its aspirations for the future.
The Debate Over a Second Ethereum Foundation
Rumours about a second Ethereum Foundation have sparked significant discussion in the Ethereum community. Konstantin Lomashuk recently addressed these speculations, making it clear that he has no plans to create an alternative to the existing EF.
However, he acknowledged the necessity of competition to foster innovation. In December 2024, Lomashuk voiced concerns about the Ethereum Foundation’s direction, questioning its slow responses to critical issues and its handling of Layer 1 networks.
Lomashuk’s stance aligns with criticisms from other prominent developers. Vitalik Buterin, Ethereum’s co-founder, recently proposed a restructuring of the EF, citing concerns about centralisation and decision-making processes.
While some developers support Buterin’s vision, others like Eric Conner have left the EF entirely, criticising its leadership and calling for more community-driven efforts.
The idea of fostering competition within Ethereum has gained traction. Martin Köppelmann, co-founder of Gnosis, proposed the creation of a “Fourth Foundation” to focus on critical areas such as Layer 1 scaling and native Layer 2 solutions.
Köppelmann argued that Ethereum’s scalability issues, particularly with Layer 2 rollups, need urgent attention. Without significant improvements, these solutions risk becoming impractical for widespread adoption.
These debates underline a broader challenge for Ethereum: balancing centralised leadership with decentralised community efforts.
While a second or fourth foundation may not yet exist, the discussions have highlighted the community’s desire for a more inclusive and competitive ecosystem.
Ethereum’s Strategy to Win Over Wall Street
While internal debates continue, Ethereum is also looking outward, aiming to position Ether (ETH) as the go-to cryptocurrency for financial institutions.
Vitalik Buterin and the Ethereum Foundation have recently supported Etherealize, a New York-based startup led by Vivek Raman, a former bond trader.
Etherealize aims to market Ethereum to Wall Street by focusing on tokenising traditional assets and developing tools for institutional adoption.
The financial sector’s interest in blockchain has grown, but Ethereum faces stiff competition. Solana, a faster blockchain, has attracted attention from high-profile projects, including the controversial $TRUMP and $MELANIA tokens.
While Ethereum boasts a nearly decade-long history of reliability, its transaction speeds and high fees have made it less appealing to some institutional players.
Despite these challenges, Ethereum remains a strong contender. Its security and track record are major selling points for financial institutions prioritising long-term reliability.
Etherealize’s strategy includes educating banks about Ethereum’s capabilities and addressing common concerns, such as scalability and fee structures.
Meanwhile, Ethereum must contend with the growing dominance of Bitcoin in institutional markets.
Bitcoin ETFs, launched in 2024, have attracted significant investment, with Ether ETFs managing only a fraction of those assets. This discrepancy underscores Ethereum’s need to refine its institutional appeal and distinguish itself from Bitcoin and newer competitors.
By focusing on Wall Street, Ethereum aims to solidify its relevance in the financial sector. However, this strategy will require not only technical upgrades but also effective communication to convince institutions of Ethereum’s value proposition.
Conclusion
Ethereum finds itself at a crossroads, facing both internal and external challenges. The debates surrounding a potential second Ethereum Foundation highlight the community’s desire for innovation and decentralisation.
Meanwhile, the push to establish Ethereum as a key player on Wall Street represents a strategic effort to secure its place in the financial sector.
These parallel developments underscore Ethereum’s adaptability and ambition. Whether through fostering competition within its ecosystem or appealing to institutional investors, Ethereum is navigating a complex landscape.
Its success will depend on balancing technical advancements with strategic positioning, ensuring it remains a leader in blockchain innovation.