Joe Lubin on Ethereum’s Future at Digital Asset Summit
Joe Lubin, co-founder of Ethereum, addressed the future of the Ethereum network at the Digital Asset Summit (DAS) recently. He emphasized how layer-2 (L2) scaling solutions are important and predicted that they would remain in the forefront of Ethereum’s growth.
Lubin clarified that developers can leverage Ethereum’s established security, allowing them to innovate rather than begin anew. He indicated that upcoming applications will require high-throughput blockchain databases, making Ethereum’s ecosystem ideal for new L2 networks.
New Layer-2 Networks
- Lubin discussed two promising layer-2 networks:
- Linea – A native Ethereum L2 with increased security features.
- MegaETH – An imminent launch scaling solution for optimizing transaction efficiency.
According to Lubin, other layer-1 networks will not match Ethereum’s security and well-developed architecture.
Investor Fears of Layer-2 Networks
As much as Ethereum focuses on promoting the adoption of L2, there are investors who argue that the networks reduce base layer revenues while delivering little economic value in return.
Impact of the Dencun Upgrade
The March 2024 Dencun upgrade precipitated a 95% drop in Ethereum’s average gas fee, significantly lowering L2 network transaction fees. But it led to a 99% decrease in base layer revenue by September 2024, sparking concerns regarding Ethereum’s long-term financial sustainability.
Ethereum Price Decline and ETF Withdrawals
Ethereum’s price has not been very good since the Dencun upgrade. Ether (ETH) fell to $1,759 on March 11, 2025, and experts forecast further declines.
Farside Investors statistics indicate that Ethereum ETFs saw outflows for 11 consecutive days, with $73.6 million on March 13 being the largest single-day outflow. Investors have become increasingly willing to hold stablecoins, government bonds, and cash during periods of market volatility.
Conclusion
Lubin remains optimistic regarding the future of Ethereum, but there are still problems. Even though layer-2 networks enhance scalability, they also come with economic problems. With declining fees, diminishing network revenue, and continuing ETF redemptions, Ethereum has an uncertain future.
