Ethereum’s Scaling Milestone: Buterin Declares Core Challenge Overcome

Ethereum co-founder Vitalik Buterin has made a significant declaration, stating that the blockchain's notorious trilemma—the longstanding trade-off between decentralization, security, and scalability—has been "practically solved." This breakthrough is attributed to recent technological advances, specifically Zero-Knowledge Ethereum Virtual Machines (ZK-EVMs) and the Fusaka upgrade. As Bitcoin captures headlines, Ethereum appears positioned to evolve from a speculative asset into a global infrastructure layer by 2026.

A shift in sentiment among traditional finance players is becoming evident. After a period of volatility in the latter half of 2025, U.S. spot Ethereum ETFs recorded net inflows of approximately $174 million in early January. This movement of capital provides a tangible indicator of changing institutional perspectives. On-chain data further supports a trend of accumulation, with larger wallets moving ETH off exchanges and into cold storage or staking contracts.

The network continues to see robust validator queue activity, and staking yields have stabilized. Major financial institutions, including BlackRock and JPMorgan, are reportedly maintaining their commitment to Ethereum-based settlement systems for tokenized assets, reinforcing the blockchain's role as a foundational technology for regulated finance.

Technical Execution: Fusaka Upgrade Delivers Tangible Results

Activated on December 3, 2025, the Fusaka upgrade—merging the Fulu consensus update with the Osaka execution layer—is demonstrating measurable impact. The network is now processing more than 2.2 million transactions daily, surpassing its peak throughput from the 2021 bull market. Enhanced Layer 1 efficiency, coupled with improved data handling via Layer-2 data blobs, has substantially increased overall capacity.

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Buterin highlighted ZK-EVMs and PeerDAS (Peer Data Availability Sampling) as the core technological components enabling this progress. These innovations allow the network to operate in a manner that is simultaneously decentralized, secure, and scalable—a milestone developers have pursued for years.

Market Performance and a Note of Caution

Ethereum's price is currently trading within a range of $3,100 to $3,200. Market analysts identify a key resistance level around $3,400; a decisive break above this point could pave the way for a move toward $4,000 in the first quarter. A weekly gain of roughly four percent and a market capitalization of $380 billion underscore the asset's regained stability.

Despite the technical achievements, Buterin has urged the community to exercise caution. He warned against the network chasing "short-term narratives" such as meme coins or artificial metrics. The focus, he stressed, must remain on security and the "walkaway test"—the ability for applications to function without centralized control. With the Fusaka upgrade now live and ZK-EVMs reaching production maturity, Ethereum is poised to potentially transition from a speculative vehicle to a mature technological infrastructure in 2026.