Ethereum co-founder Vitalik Buterin has initiated a significant strategic shift this week, declaring that the established approach of scaling the network primarily through Layer-2 solutions is no longer viable. His February 3rd statement prompted immediate responses from major rollup projects and raises fundamental questions about the ecosystem’s future direction.
This strategic reassessment comes during a challenging period for the asset. In early February, ETH faced substantial selling pressure. On February 2nd, its price declined by approximately 20%, testing a support level around $2,200.
On-chain data revealed significant whale activity contributing to the downturn. An early Bitcoin adopter moved 121,185 ETH (worth roughly $292 million) to Binance, following a prior liquidation of $230 million. Separately, Trend Research, a subsidiary of LD Capital, sold 30,000 ETH ($70.2 million) on Binance to repay loans and reduce leverage.
In a post on X, Buterin argued that the core rollup-centric scaling model requires fundamental reconsideration. He pointed to two key developments that have undermined the original vision.
First, progress toward decentralizing Layer-2 networks has been “slower and more difficult” than anticipated. Second, Ethereum itself is now scaling directly on its base layer (Layer-1). Transaction fees have remained low, and the network’s gas limit is scheduled for a significant increase in 2026.
Buterin’s critique focused particularly on networks marketed as Ethereum extensions but controlled centrally via multisignature bridges. “Anyone building a 10,000-TPS EVM that connects to L1 via a multisig bridge is not scaling Ethereum,” he stated.
Reactions from leading Layer-2 providers were mixed. Steven Goldfeder, co-founder of Offchain Labs (behind Arbitrum), walked back his previous stance that “Arbitrum is Ethereum.” Following Buterin’s comments, he clarified, “Arbitrum is not Ethereum.”
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Jesse Pollak, lead for Coinbase’s Base network, welcomed Ethereum’s scaling progress and acknowledged that Layer-2 solutions must evolve. “L2s can no longer just be ‘Ethereum, but cheaper’ in the future,” he conceded.
Ben Fisch of the Espresso Foundation offered a different interpretation to CoinDesk, suggesting Buterin’s comments signal growing independence for Layer-2s. He posited that rollups could use Ethereum as a service but are “by no means obligated” to it.
Parallel to this debate, Ethereum developers are advancing two major upgrades slated for 2026. The first, the Glamsterdam fork, is planned for the first half of the year. It aims to enhance execution efficiency and introduce a protocol-level separation of proposers and builders.
Scheduled for the latter half of 2026, the Hegota upgrade will focus on implementing Verkle Trees. This data structure is designed to reduce hardware requirements for node operators by an estimated 90%. The Ethereum Foundation confirmed in December 2025 that Fusaka had already delivered PeerDAS.
Looking forward, Buterin proposed viewing Layer-2 networks as a spectrum of systems with varying degrees of connection to Ethereum. He suggested that rollups should provide value beyond mere transaction scaling — such as enhanced privacy features or application-specific designs — and must communicate their security guarantees transparently to users.
This recalibration of strategy marks a pivotal moment for the world’s second-largest blockchain, setting the stage for its next phase of evolution.
