Ethereum’s next leap: 10x or bust?

June 03, 2025

Reading time: 5 minutes

Ethereum's 10x ambition: Buterin sets bold goal as ETFs, layoffs, and bridging shake things up

Key points:

  • Ethereum co-founder Vitalik Buterin says the network’s L1 scalability could grow 10x in the next year, prioritizing safety over speed.

  • Despite market headwinds, ETH-focused ETFs saw $321M in weekly inflows, bolstered by SEC clarity on staking and treasury rumors.

News - Ethereum is eyeing a tenfold scalability upgrade within the next year, according to co-founder Vitalik Buterin, who spoke at the ETHGlobal Prague 2025 conference. Acknowledging network congestion and gas fee woes, Buterin emphasized that safe, incremental growth of the Layer-1 base is preferable to aggressive scaling promises.

“There are people that want a 1,000x jump now, but I don't believe in that,” Buterin said, referencing the risks of centralization. His remarks come as Layer-2 ecosystems like Arbitrum and Optimism continue to gain traction, siphoning usage from Ethereum's mainnet.

Meanwhile, the Ethereum Foundation (EF) has undertaken a strategic internal shake-up. In a June 2 announcement, it revealed that its Protocol Research & Development team has been restructured into a leaner “Protocol” division. This team will now prioritize three objectives: scaling the base layer, expanding blobspace for rollups, and improving UX. However, the restructuring also involved undisclosed staff layoffs.

Staking clarity sparks ETF surge - A major catalyst driving investor optimism is the U.S. SEC’s recent stance on staking. The SEC’s Division of Corporation Finance clarified that certain self-staking and non-custodial staking services do not constitute securities, paving the way for Ethereum ETF products to potentially offer staking rewards.

Ethereum investment products saw $321 million in inflows last week alone, far outperforming other digital asset vehicles. This marked ETH’s sixth consecutive week of inflows, totaling over $1.19 billion, even as Bitcoin and XRP products saw outflows.

Capital flows and corporate speculation stir volatility - While Ethereum saw more than $400 million bridged to Solana in May, signaling user migration due to lower fees and faster speeds, Ethereum’s dominance remains intact for now. Solana’s rising developer activity and improved uptime continue to make it a viable alternative.

Adding to the speculative buzz was a filing by SharpLink Gaming claiming a planned $1 billion ETH treasury acquisition. Though its feasibility remains questionable given SharpLink’s modest market cap, the headline contributed to heightened interest in ETH markets.

Saylor's Strategy unveils $250M stock to buy more Bitcoin

Key points:

  • Strategy will raise $250M by issuing STRD preferred stock to expand its Bitcoin reserves and support operations.

  • The offering promises 10% non-cumulative dividends, but only if declared by the board.

News - Michael Saylor’s Strategy (formerly MicroStrategy) has launched a fresh capital-raising initiative through a $250 million preferred stock offering aimed at expanding its Bitcoin holdings. The company plans to issue 2.5 million shares of its newly branded “10% Series A Perpetual Stride Preferred Stock” (ticker: STRD) at $100 each. If fully subscribed, Strategy could potentially acquire over 2,350 BTC based on current market prices of around $106,325.

STRD holders are eligible for a 10% annual dividend, paid quarterly, starting September 30, 2025, but only if Strategy’s board or an authorized committee declares it. Notably, these dividends are non-cumulative, meaning missed payouts don’t roll over.

The offering follows two similar preferred stock listings earlier this year, STRK and STRF, that saw strong investor demand. Strategy, already the world’s largest corporate Bitcoin holder with 580,955 BTC on its books, is doubling down on its BTC-first treasury strategy.

New route to Bitcoin exposure for investors - The STRD stock is available to institutional investors and select non-institutional participants, offering an alternative way to gain Bitcoin exposure through a yield-bearing instrument. It blends features of traditional bonds with equity, offering payment priority over common shares without providing voting rights.

Wall Street heavyweights like Barclays, Morgan Stanley, Moelis & Company, and TD Securities are managing the deal, signaling strong institutional interest.

Why it matters - Strategy’s aggressive pursuit of BTC positions the firm as the market’s most committed corporate buyer, even amid price volatility. While critics flag risk from Bitcoin drawdowns, the company maintains that market conditions will guide its future purchases.

Retail focus: ARK 21Shares Bitcoin ETF set for 3:1 split

Key points:

  • ARK 21Shares Bitcoin ETF (ARKB) will undergo a 3-for-1 stock split on June 16 to lower its per-share cost.

  • The fund has seen six straight days of outflows totaling $430M but remains the third-largest BTC ETF by total inflows.

News - To attract more retail interest, 21Shares has announced a 3-for-1 share split for its flagship ARK 21Shares Bitcoin ETF (ARKB), effective June 16. The move triples the number of shares while reducing the cost per share to about one-third of its current $104.25 trading price, roughly $35. The company said the goal is to “enhance trading efficiency” and broaden retail accessibility, particularly with Bitcoin trading above $100,000.

Importantly, ARKB’s net asset value, ticker symbol, and investment strategy will remain unchanged. The ETF continues to offer physically backed exposure to Bitcoin, with Coinbase Custody as the primary custodian, alongside BitGo and Anchorage Digital to reduce counterparty risk.

Mixed flows despite long-term gains - While the fund has delivered a 12% return year-to-date and nearly 27% quarter-to-date, it recently recorded six consecutive trading days of net outflows totaling $430 million, including $74 million on June 2 alone, according to CoinGlass. Despite this, ARKB remains the third-largest U.S. spot Bitcoin ETF by cumulative inflows, holding 45,410 BTC worth approximately $4.82 billion.

Context: Retail tilt amid institutional heat - Since the SEC’s historic January 2024 approval of spot Bitcoin ETFs, the sector has ballooned to $125 billion in total AUM. ARKB’s stock split is part of 21Shares’ broader effort to retain relevance as funds like BlackRock and Fidelity lead institutional inflows. The move signals a tilt toward smaller investors, especially as high BTC prices and share costs may otherwise act as barriers.

Crypto ATMs exploit seniors in Australia: New rules, scam surge, and $275M at risk

Key points:

  • Australians aged 50+ account for 72% of crypto ATM transaction volume, with those aged 60–70 alone contributing 29%.

  • AUSTRAC now enforces stricter rules, including a $5K limit, scam alerts, and transaction monitoring, as scam losses top AU$3.1M.

News - Australia is cracking down on crypto ATMs after an AUSTRAC-led investigation revealed rampant scam activity and demographic targeting. The financial crimes agency found that older Australians are the most at risk, with those over 50 contributing nearly 72% of all crypto ATM transaction value. Those aged 60–70 made up 29%, placing them directly in scammers’ crosshairs.

In response, AUSTRAC has imposed strict new rules: crypto ATM providers must now enforce a cash transaction cap of AU$5,000 (US$3,250), include mandatory scam warnings, and adopt enhanced customer due diligence and robust monitoring practices. One operator, Harro’s Empire, even lost its registration entirely for failing to meet compliance standards.

These changes come amid a surge in fraud cases. Between January 2024 and 2025, Australians reported over 150 crypto ATM-related scams, totaling more than AU$3.1 million in losses. Authorities believe this is just the “tip of the iceberg,” as many cases go unreported due to embarrassment or unawareness.

Generational targeting and tech illiteracy - Crypto ATMs are being used to exploit older Australians who may lack tech fluency. Investigations uncovered victims receiving phone instructions to deposit cash or unknowingly acting as mules for criminals. In one case, an elderly man lost AU$1.4 million to a romance scam, with funds laundered through a crypto ATM.

Regulation playing catch-up - The number of crypto ATMs in Australia jumped from 23 in 2019 to over 1,800 in 2025, fueling criminal abuse before regulation could catch up. Globally, the trend is similar: FBI data shows the U.S. lost over $246 million to crypto ATM scams, with more than $100 million lost by victims over 60.

A growing hub amid new crypto tax - Australia is now the third-largest market for crypto ATMs, trailing only the U.S. and Canada. While usage grows, AUSTRAC is pushing for similar restrictions across exchanges, particularly those that accept cash. This comes as the country prepares to roll out a controversial 15% tax on unrealized crypto gains, further tightening oversight of digital finance.

Interesting facts

  • Ethereum's long-awaited Shanghai upgrade (Shapella), implemented in April 2023, allowed validators to finally withdraw their staked ETH. The update completed Ethereum’s transition to a full proof-of-stake network, unlocking over $34 billion worth of tokens.

  • Bitcoin soared to a record high of $111,814 in May 2025 amid rising U.S.–China trade tensions, before pulling back to around $104K. The move spotlighted BTC’s evolving role, seen by some as a safe haven, and by others as a high-risk asset.

  • Crypto exchange Coinbase joined the S&P 500in May 2025 following its $2.9 billion purchase of Deribit, a Dubai-based crypto derivatives platform. The milestone cements Coinbase’s role as a mainstream financial heavyweight.

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Top 3 coins of the day

dogwifhat (WIF)

Key points:

  • At press time, WIF was trading at $0.97, up 2.32% over the last 24 hours.

  • The MACD remained in bearish territory while the Parabolic SAR continued to signal downside pressure.

What you should know:

WIF attempted a rebound after defending the $0.90 support zone, but broader trend signals remained mixed. The MACD histogram showed fading bearish momentum, though the MACD line stayed below the signal line, indicating limited conviction behind the bounce. Meanwhile, the Parabolic SAR dots hovered above the candlesticks, maintaining a bearish outlook for now. On the positive side, volume picked up slightly during the intraday recovery, hinting at buyer interest around the lower range. If bulls manage to push past the $1.00 resistance and flip it into support, WIF could retest the $1.10–$1.15 zone. However, failure to sustain above $0.94 might lead to renewed selling toward $0.85.

Pepe (PEPE)

Key points:

  • At press time, PEPE was trading at $0.00001262, up 2.19% over the last 24 hours.

  • Price bounced off the $0.00001150 support, although the EWO continued to show waning bullish momentum.

What you should know:

PEPE attempted a recovery after recently dipping below the $0.00001200 mark, reclaiming ground above the 9-day SMA. This bounce reflected buyer interest near the $0.00001150 zone, which acted as a local support during the latest pullback. Despite the uptick, the Elliott Wave Oscillator (EWO) showed a continued decline in bullish strength, indicating a slowdown in upside momentum. Volume has remained relatively neutral, suggesting that buyers are cautious. For bulls to regain control, PEPE would need to convincingly break above the $0.00001320 resistance. On the flip side, a dip below $0.00001150 could trigger renewed downside pressure toward $0.00001050. Notably, President Donald Trump’s cryptic social media post featuring a frog-like figure triggered a nearly 10% price spike and 55% surge in volume last week. This was followed by major whale accumulation, with over 11.75 trillion tokens exchanged and a bold $20 million long bet reportedly placed on PEPE. With the memecoin already up over 130% this month, outpacing peers, it now eyes a breakout past the $0.000013 zone, which could unlock another 20–25% upside in June if momentum holds.

Ethereum (ETH)

Key points:

  • At press time, ETH was trading at $2,604, down 0.10% over the last 24 hours.

  • It held above the midline of the Bollinger Bands as RSI hovered around neutral bullish territory.

What you should know:

Ethereum showed signs of price consolidation above the $2,550–$2,580 range after its strong recovery from April’s lows. The price stayed well-supported near the Bollinger Bands’ midline, indicating stability despite a lack of strong directional momentum in recent sessions. The Relative Strength Index (RSI) hovered near 61, suggesting mild bullish pressure but no immediate overbought risk. Volume remained flat, hinting at reduced market participation and potential indecision. For buyers to regain momentum, ETH must close decisively above the upper Bollinger Band near $2,675–$2,700. On the downside, any drop below $2,500 could open up a revisit of the lower band support at $2,450. Until then, Ethereum appears to be consolidating within a tight range before its next breakout attempt.

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