Ethereum is undergoing a strategic shift focused on prioritizing Layer 1 (L1) scaling to address competitive pressures from other Layer 1 blockchains and the evolving dynamics between L1 and Layer 2 (L2) solutions. The Ethereum Foundation (EF) has appointed new co-executive directors and unveiled a refreshed roadmap aimed at accelerating Ethereum’s development and scaling capacity. This move reflects a reprioritization rather than a fundamental pivot, with some roadmap items being advanced to meet current demands while maintaining long-term goals. Market observers note that applications seek cheaper blockspace, which challenges Ethereum’s value accrual as it competes with L2 solutions and other blockchains offering lower costs. Additionally, Ethereum faces competition from Base, an L2 platform that has captured over $50 billion in market capitalization, raising concerns about Ethereum’s scaling direction. Discussions continue about whether Ethereum’s strategy represents a pivot towards Bitcoin Layer 2 solutions or a continuation of its existing scaling plans. Industry voices emphasize the need for Ethereum to accelerate development by a factor of ten to remain competitive and break out of its current comfort zone.