Vitalik Buterin, Ethereum’s co-founder, has acknowledged the blockchain’s excessive complexity and proposed a radical simplification plan that could reshape its future. In a May 3 blog post, Buterin outlined a vision to make Ethereum as straightforward as itcoin">Bitcoin, addressing the significant barriers developers face when building on the platform. The proposal includes setting maximum code line targets and implementing developer-friendly rules to boost adoption and maintenance efficiency. This “rebuild era” represents a cultural shift aimed at decentralizing the network further, despite previously facing criticism that the transition from Proof-of-Work to Proof-of-Stake moved Ethereum away from decentralization.
Ethereum remains the dominant blockchain for real-world asset tokenization despite recent market challenges. While the ETH/BTC ratio recently hit a five-year low at 0.01766 before recovering to 0.02237, Ethereum continues to capture 74% of the tokenized U.S. Treasury market, representing $6.2 billion in assets. BlackRock’s BUIDL fund, built on the Ethereum blockchain, has amassed over $2.5 billion in assets under management since its early 2024 launch. However, institutional investor sentiment remains cautious, with U.S.-based Spot Ethereum ETFs recording $16.11 million in outflows on May 8.
Technically, Ethereum shows promising signs of recovery after ending its consolidation phase on May 7. The cryptocurrency is approaching resistance levels at $2,550 and $2,745, with key technical indicators supporting potential further gains. The Relative Strength Index (RSI) reads 80 and the MACD displays green histogram bars above the neutral line, suggesting bullish momentum. With $59.88 billion in total value locked across its ecosystem, Ethereum continues to serve as the foundation for Layer 2 and Layer 3 scaling solutions that enhance the network’s capabilities while deriving security from the main chain.
