- Hoskinson warns Ethereum’s structural flaws and weak governance may lead to long-term decline.
- Cardano founder claims layer-2 reliance fragments Ethereum’s ecosystem and drains core value.
- Ethereum’s dominance faces pressure from agile competitors like Solana with superior tech models.
Hoskinson identified what he described as three fundamental issues within Ethereum, the accounting model, the virtual machine, and the consensus model. He emphasized that these were preventable choices, stating that the Ethereum development team proceeded despite warnings from experts within the community.
He added that these structural decisions are now complicating future upgrades and contributing to inefficiencies across the network.
On-Chain Governance and Structural Fragmentation
Hoskinson also criticized Ethereum’s lack of effective on-chain governance. According to him, the absence of a comprehensive governance system is a significant vulnerability. He estimated that it could take Ethereum five to seven years to implement a scalable and functional governance framework, given its complexity. In contrast, he noted that Cardano already possesses an evolving governance model expected to mature further within the next three to five years.
Ethereum users expressed criticism toward its rollup-centric architectural change that added layer-2 solutions such as Arbitrum and Base and Optimism to enhance scalability. Hoskinson believed these congestion management solutions are responsible for diminishing Ethereum base-layer value and causing the ecosystem to split into separate components.
Layer-2 Reliance and Ecosystem Sustainability
In a network evaluation Hoskinson stated his worries about the expanding use of layer-2 solutions. Hoskinson assessed that layer-2 solutions taking hold of activity while acquiring more liquidity worsens the mainnet’s position in the ecosystem value equation. Hoskinson anticipated rising conflicts within the stakeholder group which will impede cooperation across the platform.
During his talk Hoskinson used examples from past technology businesses which exhibited difficulties in adaptation. Hoskinson discussed two platforms MySpace and BlackBerry who experienced declining market relevance because agile competition replaced them. Solana alongside “Swede” constitute blockchain platforms that show strong development regarding their technology frameworks to compete with Ethereum for market dominance.
Cardano’s Market Position and Price Movement
Cardano’s ADA token recently broke above the 50-day simple moving average at $0.6866, indicating potential bullish momentum. A notable volume delta shift from -115.55 million to 11.31 million signals increased investor interest. The 200-day moving average, currently around $0.80, serves as a possible target. However, ADA faces resistance at $0.7666. If the token falls below $0.6866, it could retest support at $0.6153.
