Is Ethereum Failing? Scaling is Still a Dream, Decentralization a Myth

Ethereum has no active plans for implementing Sharding (for scaling) and Micro Validators (for Decentralization)in 2025.

  • Despite bringing out the scaling dream in 2022, Ethereum remains far from its core scaling feature, Sharding.
  • Reliance on Layer-2s for scaling is still unhealthy.
  • Vitalik Buterin had commented on Ethereum’s micro validator dream for decentralization, but has done little to advance it.
  • Other Layer-1 competitors like Solana, SUI, Tron, and TON might not make many promises, but they have already delivered in some areas.

Scaling is Still a Distant Dream in Ethereum

Ethereum achieved a TPS of 32,000 on Dec 3, 2025, when its Zero-Knowledge protocols were combined. The real TPS of Etheruem still remains 15 per second. Compared to this, Solana has a demonstrated TPS of 65,000, which was tested to its capacity on Trump’s memecoin launch.

Ethereum entered the TPS race very late in 2022, when it switched to the Proof of Stake consensus mechanism. The plan was to go through scaling first with the Surge series of upgrades, then consolidate Ethereum’s technology in subsequent upgrades.

The Surge upgrades aim to increase Ethereum’s TPS to 100,000 transactions per second, on par with industry leaders such as SUI, TON, and SOL. The Surge upgrades were set to implement a protocol called Sharding, which would divide the Ethereum consensus (1 million validators) into smaller groups, each capable of adding a block on its own.

Ethereum's Initial Upgrade Plan (now officially changed)
Ethereum’s Initial Upgrade Plan in 2022 (now officially ended)

For an urgent fix, it implemented the Dencun Upgrade (Proto Danksharding), which lowered its gas price and freed up space for retail transactions on the Ethereum Blockchain.

However, the actual Layer-1 TPS still remains at 15 per second.

Moreover, three years after revealing the scaling path for Etheruem, Sharding remains out of the planned upgrades.

Why is Ethereum Avoiding Micro Validators?

The next major upgrade for Ethereum was its decentralization. With an entry collateral of 32 ETH, only the wealthier participants can become Ethereum validators, leaving room for whales to influence the consensus mechanism.

Currently, 70% of ETH Stake is controlled by only 23 validators.

Despite Vitalik Buterin saying the plan was to reduce the stake to just 1 ETH, the decentralization plan was left out of the recently launched Fusaka Upgrade.

Micro Validators (those with 1 ETH stake) are essential to prevent the centralization of Ethereum because their large numbers will help prevent any concentration of validators.

Disclaimer: Crypto markets are volatile in nature. All articles on A2Z Cryptocurrencies are informational and are not financial advice. Please consult your financial adviser before investing.

Dhirendra Das
Dhirendra Das
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