Ethereum Foundation is Under Pressure After Departures
Plus, Syndicate, ZERO and Everclear wind down on the same day
gm, Defiers!
- Ethereum Foundation exodus fuels calls for a $1B price-focused rival org
- Syndicate, ZERO and Everclear wind down on the same day
- Federal Reserve proposes limited master accounts framework for crypto firms
- EUR stablecoins surge 12-fold to $777M under MiCA
- Harvard endowment cuts BlackRock BTC ETF 43%, fully exits ETH ETF
It was a rough day to be an Ethereum bull.
The world's second-largest blockchain by market cap is no stranger to existential hand-wringing, but Thursday brought an unusual convergence of bearish signals: Institutions and KOLs cashing out, high-profile EF departures, project shutdowns, and a growing chorus of voices questioning whether Ethereum has the organizational muscle to compete in an increasingly crowded L1 landscape.
Maybe fueling the hand-wringing is the market itself. ETH is trading at roughly $2,136, well below its 2025 cycle highs and trailing both Bitcoin and Solana year-to-date.
At the Ethereum Foundation, the exodus is accelerating. At least eight senior researchers and leaders have left this year, with five departures in May alone. The instability coincided with a leadership transition and a change in focus by the new administration. Former EF researcher Dankrad Feist published a proposal this week calling for an entirely new institution with at least $1 billion in initial funding, led by someone explicitly tasked with fighting for Ethereum's competitive position. The argument, in short: the EF is built to protect the protocol but nobody is protecting the price.
On the same day, three Ethereum-adjacent infrastructure projects announced they were shutting down. Syndicate Labs, Everclear, and ZERO Network, collectively representing tens of millions in venture funding, all cited versions of the same problem: the rollup and cross-chain infrastructure thesis that animated the last cycle has hit a commercialization wall. Then there's the institutional signal. Harvard Management Company cut its BlackRock Ethereum ETF position entirely in Q1.
And lastly, David Hoffman, co-host of Bankless, an influential Ethereum-focused media brands, disclosed that he has sold all of his ETH. This from a host whose show helped define the ultrasound money narrative that gave Ethereum its cultural edge during the last bull run. Around the same time, Bankless laid off at least four editorial staff members.
None of this means Ethereum is broken. The underlying developer activity, stablecoin settlement volume, total-value locked and institutional infrastructure being built on top of Ethereum still dwarfs most competitors. But that position is far from guaranteed and competition is heating up. In that context, narrative momentum matters and right now, Ethereum's is under serious pressure.
Join us to discuss what’s next for ETH after the EF exodus LIVE at 11am tomorrow, May 22!
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🔴 CLARITY Act: Who wins and who loses?
EF Exodus Fuels Calls for New Price-Focused Ethereum Organization
At least eight senior Ethereum Foundation researchers and leaders have departed this year, with five exits in May alone. Former EF researcher Dankrad Feist published a proposal calling for a new institution with at least $1 billion in initial funding, permanently funded through staking revenue, led by "someone willing to fight for Ethereum's competitive position." Other prominent crypto personalities also supported that idea. ETH was trading at ~$2,136, well below 2025 cycle highs and trailing both BTC and SOL year-to-date.
Blockchain Projects Syndicate, ZERO and Everclear Wind Down on the Same Day
Three blockchain-infrastructure projects announced wind-downs on Thursday. Syndicate Labs (a16z-backed, $27M raised) cited a fundamental shift away from EVM rollups. Everclear (formerly Connext) reached $500M in monthly volume but couldn't convert it to revenue before runway ran out. ZERO Network, a gasless Ethereum L2 built by Zerion, is shutting down and redirecting its team back to core wallet products.
Federal Reserve Proposes Limited Master Accounts Framework for Crypto Firms
The Federal Reserve has proposed a framework giving crypto firms access to Fed payment rails — including real-time gross settlement (RTGS) — without full master account status, opening a 60-day comment period.
EUR-Denominated Stablecoins Surge 12-Fold as European Banks Scale MiCA-Compliant Assets
EUR stablecoins processed at retail VASPs have grown 12-fold over 15 months to $777 million in transaction volume, per Fireblocks' State of Stablecoins 2025 report, as European banks move from pilots to production deployments under MiCA.
Harvard Endowment Cuts Bitcoin ETF Holdings by 43%, Exits Ethereum Fund Entirely
Harvard Management Company cut its BlackRock Bitcoin ETF (IBIT) position by ~43% in Q1 2026 and fully exited BlackRock's Ethereum ETF. Meanwhile, Abu Dhabi's Mubadala increased its IBIT stake 16% to ~$566 million in the same period.
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