• 10x Market Update
  • Posts
  • Simplifying the L1: Ethereum's Path to Scalability and Value Recapture

Simplifying the L1: Ethereum's Path to Scalability and Value Recapture

Actionable Market Insights

Author

10x Research
May 12, 2025

Why This Report Matters

Ethereum’s recent Pectra upgrade and emerging EIP-4850 proposal promise to reclaim value from Layer 2 solutions, challenging the narrative that L2s 'vampirize' the network. Vitalik Buterin’s vision for a simpler, more robust consensus layer, including a '3-slot finality' concept, signals a shift toward maintainability and security over the pursuit of feature creep.

By prioritizing data availability and STARK-based aggregation, Ethereum aims to bolster scalability without overloading its core protocol. The interplay between these technical changes and market dynamics could drive a fresh wave of adoption for decentralized applications and DeFi.

This report examines the implications of Ethereum’s simplicity drive and outlines a clear trading idea to capitalize on the ensuing rally. Understanding these upgrades is critical for positioning ahead of potential price surges and architecting resilient blockchain solutions.

Ethereum Trend Model Flipped Bullish on May 1

Market Updates

Become a paying subscriber of Market Updates to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

Most comprehensive, unbiased digital asset research for traders and institutions:

  • • Receive 2-4 concise, informative Market Updates reports per week.
  • • We cover everything that impacts the price of Bitcoin and other major cryptos, from on-chain data to macro and market structure (funding rates, money flows, etc.). Our insights are trusted by some of the largest hedge funds and traders in the industry.
  • • You'll gain full access to our in-depth 'Market Update' analysis, informed by our experience at leading investment banks like Goldman Sachs, Morgan Stanley, and JP Morgan, as well as managing hedge fund capital at Millennium.
  • • We rigorously backtest our insights and are unafraid to call bullish or bearish market conditions. Our research is unique and grounded in solid financial analysis, offering perspectives you won't find anywhere else.
  • • --------------
  • • Our clients include hedge funds, traders, liquidity providers, exchanges, family offices, proprietary traders, institutions, high-net-worth individuals (HNWIs), CEOs of major listed Bitcoin mining companies, executives from crypto service providers, TradeFi portfolio managers, etc.