In Brief
- Buterin says physics and decentralization limit how fast Ethereum consensus can run
- Ethereum should act as a global coordination layer, with L2s handling speed use cases
- ETH tests key $3,020–$3,050 support after losing a major technical level
Vitalik Buterin stated that Ethereum must prioritize bandwidth scaling over latency reduction to maintain decentralization. He explained that reducing latency faces physical and economic constraints, including the speed of light and the need for global node access.
Ethereum’s bandwidth, however, can grow safely with technologies like PeerDAS and zero-knowledge proofs. These tools enable scaling thousands of times beyond the current limits while preserving security and accessibility.
Layer 2s to Handle High-Speed Applications
Buterin emphasized that Ethereum should act as a global coordination infrastructure, not a platform for sub-second applications. He positioned the base layer as the “world heartbeat,” with speed-focused apps moving to Layer 2 chains.
AI and localized use cases may need “city chains” with faster response times than Ethereum can support. In contrast, Ethereum’s Layer 2 ecosystem can handle such needs while maintaining the base layer’s decentralization.
Technical improvements may reduce block times to 2–4 seconds without tradeoffs. However, Buterin explained that pushing further would compromise decentralization and exclude home-based nodes.
He also noted Ethereum’s role is similar to Linux or BitTorrent: global, decentralized, and dependable. While Ethereum won’t match centralized systems on speed, it can still provide reliable consensus and infrastructure.
Recent growth in new addresses, now reaching 292,000 daily, reflects increasing adoption post-Fusaka upgrade. Meanwhile, major banks like JPMorgan and Deutsche Bank continue to build Ethereum-based financial products.
Ethereum remains limited by consumer-grade hardware capacity, including bandwidth, CPU use, and storage. But developers can still achieve significant scaling through safe architectural changes and Layer 2 expansion.

Meanwhile, Ethereum’s price action shows weakness as it loses key support. The $3,020–$3,050 range is the next major support zone to watch. Holding this level may lead to a reversal, but failure could invite further downside.
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