Vitalik Buterin Proposes Groundbreaking Change for Ethereum’s Execution Layer
In a bold move that could redefine the landscape of the Ethereum network, co-founder Vitalik Buterin has proposed a significant overhaul of Ethereum’s execution layer. On April 20, 2025, he unveiled plans to transition from the traditional Ethereum Virtual Machine (EVM) contract language to the more versatile RISC-V instruction set architecture. This suggestion aims to tackle critical constraints that users and developers have faced as Ethereum strives to maintain its scalability and competitiveness in an ever-evolving blockchain world.
Addressing Bottlenecks: The Urgency for Change
Buterin’s proposal comes at a crucial juncture when Ethereum faces escalating challenges from newer, high-performance blockchains like Solana and Sui. These rival networks have attracted significant attention by offering faster and cheaper transaction options, prompting Ethereum to reevaluate its strategies to meet developer and user expectations.
In his detailed proposal, Buterin identified several bottlenecks currently hindering Ethereum’s performance. Key areas of concern include:
- Data Availability Sampling: Improving the efficiency of data access and distribution within the network.
- Competition in Block Production: Ensuring a healthy ecosystem for block validation that incentivizes decentralization and innovation.
- Optimization of Zero-Knowledge Proof Generation: Enhancing the capabilities and efficiency of zero-knowledge proof systems, which are critical for privacy and scalability in blockchain transactions.
According to Buterin, adopting RISC-V could pave the way for groundbreaking advancements, particularly in zero-knowledge functionalities. He remarked, “The beam chain effort holds great promise for simplifying Ethereum’s consensus layer. But for the execution layer to achieve similar benefits, a radical shift like this may be the only viable path.”
The Downward Trend: Ethereum’s Economic Challenges
As Ethereum pushes for this transformation, the pressure is mounting. Recent data illustrates a troubling trend: revenue from Ethereum’s transaction fees—specifically known as “blob fees”—has plummeted sharply. For instance, during the week of March 30, the total blob fees collected amounted to just 3.18 ETH (around $5,000). Further compounding this issue, average transaction fees on the network fell to an alarming five-year low of $0.16 in April 2025.
Santiment’s marketing director Brian Quinlivan suggests this drop results from users migrating toward layer-2 solutions, which, while lowering transaction costs, have simultaneously diverted much-needed revenue away from Ethereum’s core infrastructure.
🚨💸 BREAKING: Ethereum fees are at a 5-year low, with transactions currently costing just $0.168. This is the cheapest daily cost of making $ETH transfers since May 2, 2020. We briefly break this down in our latest insight. 👇https://t.co/fg5CfRgsHn pic.twitter.com/QlLwyzdm1F— Santiment (@santimentfeed) April 16, 2025
Implications for the Ethereum Ecosystem
The decline in transaction fees signifies a deeper issue regarding the sustainability of Ethereum’s base layer. With the price of ETH already facing downward pressure, analysts are concerned that continued decline in base-layer activities could see prices fall further, potentially touching levels around $1,100 unless sentiment shifts positively.
Expert Opinions: A Mixed Bag
In light of Ethereum’s struggles, several analysts have shared dire assessments of ETH’s investment potential. Notably, Nic Carter, a crypto venture capitalist with Castle Island Ventures, pointed to two main factors undermining Ether’s value:
- The proliferation of layer-2 (L2) scaling networks that siphon off value from Ethereum’s base layer.
- Uncontrolled issuance of new tokens which dilutes the value of existing ETH.
Carter suggests that L2s are “greedy,” capturing user activity and revenue without ensuring that Ethereum’s base layer receives sufficient returns—warning that “ETH was buried in an avalanche of its own tokens.” This sentiment was echoed by Quinn Thompson, founder of Lekker Capital, who declared Ethereum “completely dead” as an investment, citing falling transaction volumes and diminishing user engagement.
Make no mistake, $ETH as an investment is completely dead. A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not. pic.twitter.com/XjZNjPjy2s— Quinn Thompson (@qthomp) March 28, 2025
What Lies Ahead for Ethereum?
As proposed changes loom over Ethereum’s future, questions arise about its adaptability in this fast-paced market. The potential shift to RISC-V represents a radical yet necessary step that could enhance Ethereum’s scalability and combat competition. But will this bold move be enough to regain lost momentum and draw users back to its base layer?
In an environment characterized by rapid innovation and fierce competition, Ethereum has a pivotal decision to make: to adapt, innovate, and transform or risk becoming obsolete. The community and investors alike will be watching closely to see how this narrative unfolds.
Join the Conversation!
What are your thoughts on Buterin’s proposal and the current state of Ethereum? Do you believe switching to RISC-V could revolutionize its execution layer? Let us know your opinions in the comments below!