Ethereum is losing its core direction - What is Core when you don't know who you are?

Ethereum is not falling behind because of Solana or any new blockchain. The real issue is that Ethereum is losing its way at the core of its ecosystem—precisely because of the fragmentation it has created. In recent years, as Ethereum shifted its entire strategy toward Layer 2 solutions, a fundamental question was overlooked: what is the true core of Ethereum?

Debate Over Strategy Masking the Real Demand Problem

The Ethereum community spends too much time on philosophical debates rather than focusing on what users actually need:

• Which Layer 2 is the “true Ethereum”?
• Does using Layer 2 still count as using Ethereum?
• Is Ethereum focusing on decentralization or centralization?

As Arbitrum, Base, Optimism, zkSync, Scroll, and Polygon enter the market, each promises decentralization. But in reality, most still operate in a centralized manner. Only Arbitrum and Base are truly gaining traction—not because of decentralization arguments, but because they meet what users really want: deep liquidity, user-friendly interfaces, and a rich ecosystem of applications. That’s the core of success—not technical debates.

Fragmented Layer 2 Economics and Weakening Ecosystem Value

People talk about ideal decentralization, but when money is involved, things change:

• Base’s revenue sharing with Ethereum is just a tiny fraction
• Most Layer 2s still control transaction ordering
• Token value for Layer 2s struggles because fees are still paid in ETH

This is the core economic issue: when the fundamentals are uncertain, the entire incentive structure collapses.

Talent Leaving, Signals from the Core Developer Community

It’s not just small projects abandoning Ethereum; even the most committed developers are turning away:

• Some core developers have left the Ethereum Foundation
• Major investment funds that once strongly supported Polygon are shifting to build new chains
• Despite years of contribution, Polygon remains on the “periphery” of the ecosystem

When the most trusted members move to support alternative solutions, it’s a clear signal that the core ecosystem is facing deep-rooted problems.

What Is ETH Core? The Narrative Is Dead

What exactly is Ethereum (ETH)? Every year, the narrative shifts:

• A store of value?
• A digital commodity?
• A technological token?
• Or just a fee-paying unit for Layer 2?

This lack of clarity is at the heart of the crisis. The theory says Ethereum is decentralized, but in practice, strategic decisions still depend on Vitalik. When the system doesn’t know what it is, how can users understand what Ethereum truly represents?

Acknowledging the Problem—But Is There Time?

Vitalik himself admits that focusing solely on Layer 2 is not enough. Ethereum needs to return to expanding its Layer 1. The Ethereum Foundation is starting to change:

• Restructuring leadership
• Improving transparency
• Refreshing the leadership team

But the market waits for no one. Solana, other Layer 1s, and even independent Layer 2s are developing at a faster pace. Ethereum doesn’t have much time to “slow down and get it right.” If its core strategy isn’t clarified soon, Ethereum risks falling behind.

What will Ethereum choose? To realign its ecosystem around its core mission, prioritizing practical needs over philosophical debates? Or to continue waiting for the “perfect” moment, accepting that someday, Ethereum’s core may no longer be relevant in the market?