Overview
- Scaling, messaging, and storage now largely live off the base chain via layer‑two networks, the Waku messaging stack, and IPFS, with permanent archiving still unresolved.
- Recent protocol direction favors an ossified core that minimizes disruptive upgrades while channeling improvements to layer‑two ecosystems.
- Zero‑knowledge EVM projects and data‑availability advances such as PeerDAS are boosting throughput and lowering costs on the broader stack.
- Usage remains robust with active wallets near recent highs, deep liquidity, and a growing validator set supporting DeFi, stablecoins, lending, and on‑chain trading despite fragmented layer‑two liquidity.
- Privacy features persist through Ethereum’s pseudonymous design and tools like Railgun, even as selective wallet blacklisting seeks to meet regulatory expectations.