Vitalik’s Ethereum Proposal Fails to Spark: Ex-Crypto Star Losing His Crown?

On May 19, 2025, Ethereum co-founder Vitalik Buterin proposed “partially stateless nodes” to scale Ethereum’s Layer-1, aiming to boost gas limits by 10–100x while reducing node storage needs. Shared via his blog, the plan seeks to make running nodes easier, preserving decentralization and resisting censorship.

Yet, the market barely reacted, with Ethereum’s price rises back above the $2,500 mark, a 4% daily price surge. This muted response contrasts sharply with 2021, when EIP-1559 was officially confirmed on March 5, the price of ETH rose from around $1,500 to around $1,800 within three days, an increase of approximately 20%. Once crypto’s top influencer, Vitalik’s latest move underscores a stark reality: Ethereum’s star power is fading in a market no longer captivated by his vision.

A Technical Step, But No Market Waves

Buterin’s partially stateless nodes allow users to verify the blockchain while storing only data tied to their needs, like DeFi apps or tokens, slashing storage demands from 1.3TB. The proposal includes EIP-4444 to limit historical data to 36 days and tweaks gas pricing for efficiency. “This ensures local access to critical data with maximal privacy,” Buterin said, countering risks from centralized RPC providers like Infura.

But the market remained unmoved. Ethereum’s price showed no significant spike and even experienced a brief dip, a decline that appears tied to profit-taking by major holders. According to on-chain data from Lookonchain, one address sold 4,718 ETH — valued at $11.53 million — realizing a profit of $3.18 million. Another wallet unloaded 2,594 ETH for $6.23 million, earning $1.31 million in gains.

These moves have sparked speculation that large investors may be exiting positions amid uncertainty surrounding the network’s evolution. Although Vitalik remains focused on Ethereum’s long-term infrastructure development, recent market activity reflects some short-term volatility. Why is Vitalik no longer as impactful as he used to be?

A Crypto Icon Eclipsed

Ethereum and Vitalik once drove crypto’s pulse. His tweets could send ETH soaring, and Ethereum Foundation events like Devcon were market movers. Today, a mature crypto market is crowded with rivals like Solana and Avalanche, which boast lower fees and faster transactions. “Ethereum’s high fees push developers elsewhere,” Cointribune noted

Ethereum’s focus has shifted to Layer-2 solutions like Arbitrum and Base, which hold $6.73 billion and $3.56 billion in stablecoin value, respectively, easing network congestion. Investors, chasing DeFi yields or NFT hype, overlook Layer-1 upgrades. “Vitalik’s idea is solid, but the market’s into meme coins and Layer-2 pumps,” some remarked. The Ethereum Foundation’s Trillion Dollar Security Initiative, launched May 14, 2025, emphasizes long-term security but lacks market appeal.

Buterin’s influence has also decentralized. Once Ethereum’s face, he now shares the stage with developers and Layer-2 teams. The Foundation’s tech-heavy approach pales against Solana’s marketing flair. “Vitalik’s a genius, but the market wants new heroes,” someone noted with a hint of nostalgia.

Fading Away or Shining Again?

Buterin’s proposal aligns with his push for a simpler Layer-1, inspired by Bitcoin’s minimalism. Yet, as crypto chases new narratives, Ethereum risks becoming a “mature but quiet” backbone.

Can Vitalik’s brilliance rekindle market excitement, or will Ethereum glow behind the scenes? For now, the former superstar’s latest act hasn’t packed the house—but the stage remains set.