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A fundamental reassessment of Ethereum’s core scaling approach is being urged by one of its creators. Co-founder Vitalik Buterin has publicly questioned the blockchain’s established “rollup-centric” roadmap, citing concerns over the pace of decentralization within its Layer-2 ecosystem. This call for a strategic pivot arrives during a period of significant technical development and challenging market conditions for the network.
The discussion around Ethereum’s future direction is unfolding against a backdrop of substantial market pressure. The price of ETH has faced a severe downturn, currently trading near $2,270. This represents a decline of almost 25% over the past week, placing the asset close to its 52-week low. While institutional investment via spot ETFs, launched in 2024, continues selectively, a divergence is visible in the Layer-2 sector. Transaction volumes remain robust, yet the Total Value Locked (TVL) across these networks has retreated from the peaks witnessed in mid-2025.
For an extended period, offloading transaction execution to Layer-2 rollups was considered Ethereum’s primary scaling solution. Buterin, however, argued this week that the vision requires adjustment. His central critique highlights a growing disparity: while the base Layer 1 has made significant scalability strides, the decentralization of Layer-2 solutions is progressing more slowly than anticipated. Many of these networks retain centralized control elements for technical or regulatory reasons, he noted.
Rather than viewing Layer-2 projects merely as extensions or “branded shards” of Ethereum, Buterin proposes a new framework. The ecosystem should begin to perceive them as a diverse spectrum of blockchains with varying degrees of connection and integration to the Ethereum mainnet.
Despite the high-level strategic debate, a series of concrete technical upgrades remain scheduled. The network is preparing for the “Glamsterdam” upgrade, slated for the first half of 2026, which is designed to optimize transaction processing for greater speed and cost efficiency. Later in the year, the “Hegota” update is expected to follow, focusing on enhanced data management, privacy, and censorship resistance. These developments build upon the foundation laid by previous “Dencun” and “Pectra” upgrades, which successfully improved fee structures for Layer-2 solutions.
The coming months will test Ethereum’s ability to advance its technical roadmap while simultaneously navigating a crucial reassessment of its long-term scaling philosophy.
The Cardano ecosystem is receiving conflicting signals from the institutional investment world this week. On one hand, a major crypto asset manager has removed ADA from a flagship product. Concurrently, a fresh wave of exchange-traded fund (ETF) applications seeks to bolster the blockchain’s profile among traditional investors.
In a significant development, Volatility Shares has submitted updated paperwork to the U.S. Securities and Exchange Commission (SEC) for three distinct Cardano-focused investment products. The proposed funds include:
* A spot Cardano ETF, designed to track ADA’s market price directly.
* A 2x Leveraged Cardano ETF, targeting twice the daily movement of the underlying asset.
* A 3x Leveraged Cardano ETF, aiming for triple the daily gains or losses.
All three products are slated for listing on the NYSE Arca exchange. These filings join other pending Cardano-related regulatory proceedings, such as Grayscale’s ongoing Cardano Trust (19b-4) application. This activity suggests a growing pipeline of potential investment vehicles for ADA, even as it faces challenges elsewhere.
In a separate move, Grayscale Investments has executed a scheduled quarterly rebalancing of its CoinDesk Crypto 5 ETF (GDLC). As a result, Cardano (ADA) has been eliminated from the fund’s portfolio and replaced with Binance Coin (BNB), marking BNB’s debut in this particular product.
This decision stems from the rules governing the underlying CoinDesk Large Cap Select Index. The index methodology mandates that constituent selection and weighting are based on market capitalization and liquidity metrics. Consequently, ADA’s removal primarily reflects its recent decline in ranking among major digital assets; it currently holds approximately the 10th position by market cap.
The revised GDLC portfolio allocation (excerpt) illustrates the shift:
* Bitcoin (BTC): 74.21%
* Ethereum (ETH): 13.34%
* Binance Coin (BNB): 4.97%
* XRP (XRP): 4.68%
* Solana (SOL): 2.80%
Amid these institutional developments, ADA’s market price remains under strain. The token is trading around $0.30, hovering close to its 52-week low of $0.29 recorded on February 2, 2026. A Relative Strength Index (RSI) reading of 32.5 indicates the asset has recently experienced substantial selling pressure.
However, development activity within the Cardano network continues unabated. Key initiatives include updates to the Ouroboros consensus mechanism, optimizations for Mithril, and progress on the Hydra layer-2 scaling solution. Furthermore, the ecosystem anticipates the Protocol Version 11 hard fork in February 2026, which is expected to enhance Plutus smart contract performance and streamline transaction rules.
Looking ahead, two near-term catalysts are poised to influence Cardano’s trajectory: regulatory decisions from the SEC on the various ETF applications and the successful deployment of Protocol Version 11 next month. These events represent the most immediate, calendar-defined potential drivers for the project, offering either a boost to institutional access and confidence or another test of investor patience.
The XRP ecosystem is receiving significant structural support from two distinct quarters. While the Flare Network is unlocking new decentralized finance (DeFi) capabilities for token holders, Russia’s primary exchange is preparing to list derivative products. This infrastructure expansion arrives during a period of pronounced market weakness, raising questions about its immediate impact.
In a parallel development announced on February 3, 2026, the Moscow Exchange (MOEX) revealed plans to introduce cash-settled futures contracts for XRP, alongside Solana and Tron. According to MOEX manager Maria Silkina, the first step will involve launching indices for these three altcoins, which will subsequently serve as the underlying reference for the futures contracts.
The proposed structure mirrors the exchange’s existing Bitcoin and Ethereum futures products:
* Settlement in Russian rubles
* Cash settlement (with no physical delivery of cryptocurrencies)
* Access restricted to qualified investors
* Contracts with monthly expiries
Reports also indicate the exchange is evaluating the addition of perpetual futures to its cryptocurrency offerings.
A key limitation for XRP has been addressed by the Flare Network, which activated a lending and borrowing function for FXRP—a wrapped version of XRP—on February 3, 2026. This allows the original XRP to remain on the XRP Ledger while its wrapped counterpart is utilized within Flare’s DeFi ecosystem via integration with the Morpho lending protocol.
This development enables users to deposit FXRP into vaults to earn interest or to use it as collateral for borrowing other assets, such as stablecoins. Morpho employs a model of isolated markets, where each market pairs one specific collateral asset with one borrowable asset under defined rules. This design aims to contain risk and prevent contagion between different markets.
Access is facilitated through the Mystic application, which displays available vaults and manages collateralized deposits and loans. Initial vaults support assets including FXRP, the native FLR token, and USDT0, with independent entities like Clearstar acting as “curators” to manage these markets.
These announcements coincide with a period of intense market volatility. Bitcoin recently plunged to a 14-month low before recovering, a move accompanied by significant forced liquidations. Data indicates approximately $740 million in liquidations occurred during a particularly turbulent session on Tuesday.
Signals from within the XRP ecosystem have been mixed. Late January saw a single-day net outflow of $92.92 million from XRP spot ETFs, marking the largest daily withdrawal since their launch. However, cumulative inflows since the ETF rollout in November 2025 stand at roughly $1.17 billion. Furthermore, Ripple ruled out an immediate public listing in January, citing strong financial flexibility following a $500 million funding round in November 2025 that valued the company at $40 billion.
The current price action reflects the uncertainty: XRP has touched a new 52-week low at $1.58, with its Relative Strength Index (RSI) reading of 28.8 signaling oversold conditions.
Ultimately, the landscape presents a clear dichotomy: Flare is enhancing XRP’s utility in DeFi, while MOEX is building the framework for more institutional-grade derivatives. Whether this translates into short-term demand will likely depend on a subsidence of the broader market’s volatility and the tangible adoption of these new offerings, moving them from theoretical constructs to actively used financial instruments.
This Wednesday finds Solana at a critical juncture, characterized by a stark divergence between its market valuation and underlying fundamentals. The asset’s price has plunged to a fresh 52-week low, breaching the psychologically significant $100 threshold. However, this price weakness contrasts sharply with robust on-chain metrics and strategic institutional moves, painting a complex picture for the blockchain.
Despite the bearish price action, significant capital is entering the Solana ecosystem, signaling long-term confidence from major players. In a landmark deal, ParaFi Capital invested $35 million in Jupiter, Solana’s premier liquidity aggregator. This transaction is notable not only as Jupiter’s first external capital raise but also for being settled in JupUSD, the platform’s native stablecoin. This move highlights a deliberate strategy to deepen institutional involvement in tokenization and on-chain payment systems.
Concurrently, asset manager WisdomTree is bridging traditional and decentralized finance. Through new platforms, the firm is making its suite of regulated tokenized funds—including money market and equity products—directly accessible on the Solana blockchain. This integration allows investors to gain exposure to real-world assets (RWAs) while leveraging the blockchain’s settlement speed.
Financial institutions are recalibrating their forecasts in response to current market conditions. Analysts at British banking giant Standard Chartered have tempered their near-term expectations while reaffirming a bullish decade-long view. They have revised their year-end 2026 price target down from $310 to $250, citing a necessary transition period as the network evolves from a hub for speculative trading toward becoming a dominant infrastructure for stablecoin micro-payments.
The bank’s long-term conviction remains strong, however. It has raised its 2030 price projection to $2,000, emphasizing Solana’s technological edge in high transaction throughput and low costs. This advantage is seen as key to capturing a substantial share of the expanding digital payments market.
On-chain data reveals a network experiencing unprecedented usage, directly contradicting the negative price trend. According to analytics from Nansen, the count of daily active addresses on Solana surpassed 5 million in January 2026. This figure represents a doubling from prior months and places the network far ahead of its competitors in terms of user engagement.
This divergence extends to investment products. U.S. spot ETFs for Solana attracted net inflows exceeding $100 million in January, a period during which other major crypto assets faced outflows. This accumulation suggests institutional investors are strategically building positions, viewing the current market weakness as a buying opportunity.
A significant technical milestone, the planned “Alpenglow” upgrade scheduled for Q1 2026, is poised to further strengthen the network’s foundations. The overhaul of consensus mechanisms is expected to reduce block finality to approximately 150 milliseconds, cementing Solana’s position as a backbone for high-speed payment systems.
XRP Struggles to Capitalize on Regulatory Milestones
Despite securing significant regulatory approvals and advancing its real-world asset tokenization initiatives, Ripple’s native XRP token has faced substantial selling pressure. The digital asset shed approximately 20% of its value last week, demonstrating a clear disconnect between corporate progress and token price performance. Market skepticism currently overshadows the operational growth of the company.
A Challenging Market Environment Outweighs Fundamentals
On February 2, 2026, Ripple announced it had obtained a full Electronic Money Institution (EMI) license from Luxembourg’s regulatory authority. This move converted a prior preliminary approval into an operational status, allowing the firm to scale its payment services across the European Union. This development followed a similar regulatory green light from United Kingdom authorities in January.
With a global portfolio now exceeding 75 licenses, Ripple has established itself as one of the most heavily regulated entities in the cryptocurrency sector. The strategic aim is a broader deployment of its “Ripple Payments” solution for banks and financial technology companies.
The Core Disconnect Between Business and Token
Analysts highlight a fundamental issue: Ripple’s business successes do not directly translate into increased demand for the XRP token itself. Currently trading near $1.60, XRP remains far from its 52-week high. Many of the newly licensed payment services can theoretically function without mandating the use of XRP as a bridge currency for settlement.
Broader market sentiment has also deteriorated. Since mid-January, on-chain data has indicated rising flows of XRP onto exchange platforms—a pattern historically viewed as a precursor to selling pressure. Even the substantial inflows into XRP-related Exchange-Traded Funds (ETFs), which have surpassed $1.3 billion since their launch in November 2025, have failed to counteract the recent downward trend.
Tokenization Advances Fail to Ignite Rally
Recent project announcements have similarly failed to stimulate positive price action. In one notable development, certified diamonds valued at $280 million were tokenized on the XRP Ledger in the United Arab Emirates. Concurrently, the Moscow Exchange has revealed plans to introduce XRP futures contracts for qualified investors.
The short-term outlook remains challenging. Historical performance data suggests February has often been a weak month for XRP, typically generating negative average returns. Amid a broader cryptocurrency market correction, Ripple’s regulatory victories appear insufficient, for now, to act as a primary catalyst for the token’s price.