Is Ethereum a Good Investment in 2026? What Happened After The Merge
Is Ethereum a Good Investment in 2026? What Happened After The Merge? Is there a Roadmap for Ethereum moving forward? Let’s dive in!
Ethereum 2026: Scaling the Base Layer, Rethinking L2, and Redefining DeFi
On February 18, 2026, the Ethereum Foundation unveiled its official roadmap for the year. The direction is clear: make Ethereum faster, more usable, and more resilient — without compromising decentralization.
Two major upgrades, Glamsterdam and Hegotá, will anchor 2026. But beyond protocol changes, the year is also marked by deeper debates: the future of Layer 2, the role of Zero-Knowledge proofs, Ethereum’s relationship with AI, and a bold redefinition of what “real DeFi” actually means.
This is not just a technical roadmap. It is a philosophical reset.
Ethereum’s 2026 Roadmap
Ethereum has updated the road map on their website, instead of chosen so many things to do like last time, they chose to take it step by step this time, and it seems to be working great.
Glamsterdam (First Half of 2026)
Glamsterdam is the first upgrade following Fusaka. Learning from the Pectra upgrade — which was delayed due to overloading too many features — the core developers decided to focus on only two headline changes.
EIP-7732 (ePBS – Enshrined Proposer-Builder Separation)
To understand EIP-7732, it’s important to understand how blocks are produced on Ethereum today.
Each block involves two roles:
- A proposer who proposes the block.
- A builder who constructs the block’s contents to maximize fee revenue.
Currently, communication between these two roles happens outside the protocol via external relays. This creates risks of manipulation and centralization.
EIP-7732 brings this process directly into Ethereum’s core protocol. Builders will be able to cryptographically seal block contents so proposers cannot preview and exploit transaction ordering.
The result:
- Fairer transaction ordering
- Reduced manipulation risk
- Stronger protocol-level neutrality
In short, Ethereum internalizes what was previously outsourced — a major step toward systemic fairness.
EIP-7928 (BALs – Block Access Lists)
EIP-7928 requires transactions to declare in advance which accounts and smart contracts they will access.
This enables parallel execution.
Today, Ethereum processes transactions sequentially. Even transactions that do not interact with each other must wait in line. With BALs:
- Non-conflicting transactions can execute simultaneously.
- Network throughput increases dramatically.
- Gas limits can rise safely.
After Fusaka, gas limits increased from 30 million to 60 million. In 2026, Ethereum aims to push toward and potentially exceed 100 million gas, with long-term discussions targeting up to 200 million.
Glamsterdam is about execution efficiency and block production integrity — scaling the base layer without sacrificing security.
Hegotá (Second Half of 2026)
Hegotá focuses on deeper infrastructure transformation.
Verkle Trees
Ethereum has used the Merkle Patricia Trie since its earliest days. Every transaction ever executed remains stored permanently, causing the state size to grow continuously.
As storage requirements increase:
- Running a full node becomes more expensive.
- Fewer individuals can participate.
- Decentralization erodes over time.
Verkle Trees replace the current structure and reduce storage requirements by up to 90%.
Even more importantly:
- Nodes will be able to verify transactions without downloading the entire blockchain history.
- Running a node on ordinary hardware becomes realistic again.
The long-term goal is simple: anyone with a normal computer should be able to verify Ethereum.
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EIP-8025 (Optional Execution Proofs)
Currently, every validator must re-execute all transactions in each block to verify correctness. As gas limits increase, computational load increases accordingly.
EIP-8025 proposes a specialized group called zkAttesters, who generate Zero-Knowledge proofs verifying block correctness.
Validators could:
- Verify the cryptographic proof instead of re-running all computations.
- Dramatically reduce computational requirements.
- Maintain optional participation (nodes that ignore this feature remain compatible).
EIP-8025 is still under discussion, and final headliners for Hegotá have not yet been finalized.
EIP-7805 (FOCIL)
In 2022, after U.S. sanctions targeted Tornado Cash, block builders voluntarily excluded related transactions. Users temporarily lost access to their funds.
This demonstrated a critical weakness: Ethereum could be censored if block production is controlled by a small group.
EIP-7805 FOCIL changes that dynamic by distributing transaction inclusion power across more than one million validators globally.
If no centralized entity can coerce all validators simultaneously, censorship resistance becomes structurally enforced at the protocol level.
Hegotá is about decentralization durability.
Additional 2026 Initiatives
Beyond the two major upgrades, the Ethereum Foundation is tackling two broader challenges.
Native Account Abstraction
Today, users must:
- Manage private keys.
- Pay gas in ETH.
- Accept irreversible loss if keys are lost.
Native account abstraction aims to:
- Allow gas payment in any token.
- Enable account recovery mechanisms.
- Abstract away the need to understand ETH at all.
In parallel, the Open Intents Framework seeks to standardize asset transfers across Layer 2 networks, reducing friction and bridge risk.
Post-Quantum Security
Ethereum currently relies on ECDSA cryptography. Powerful quantum computers could break it within the next decade.
Though not an immediate threat, failing to prepare early could be catastrophic.
For the first time, post-quantum security has entered Ethereum’s official roadmap. Native account abstraction will significantly ease future migration to quantum-resistant cryptography when necessary.
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Layer 2 Is No Longer Sufficient
On February 3, 2026, Vitalik publicly acknowledged that his 2020 Layer 2–centric scaling roadmap is no longer fully aligned with current realities.
This is significant. Hundreds of L2 projects were built under that vision.
He cites two main reasons:
Slower L2 Decentralization
By early 2026, only a few networks such as:
- Arbitrum
- OP Mainnet
- Base
have reached Stage 1 decentralization under the three-stage framework introduced in November 2022.
Most remain in Stage 0, relying on centralized sequencers. Some openly state they may never progress further due to regulatory constraints.
Ethereum L1 Scaling Faster Than Expected
After Fusaka, Ethereum transaction fees dropped to record lows. With gas limits climbing and ambitions reaching 200 million, L1 scalability begins to compete directly with L2 value propositions.
Vitalik stated clearly:
If a network connects to Ethereum only via a bridge controlled by a small group, then even 10,000 TPS does not equate to scaling Ethereum.
However, he did not advocate eliminating L2s. Instead, he suggested they pivot toward specialized applications:
- Privacy-focused VMs
- AI-specific blockchains
- Social networks
- Ultra-high throughput systems beyond L1 capability
Minimum requirement: reach Stage 1 decentralization.
One symbolic move came from Ethereum Name Service. ENS canceled its planned L2 “Namechain” project, originally announced in November 2024.
Founder Nick Johnson explained that gas fees for ENS registration have fallen by 99%. Subsidizing all 2025 transactions would cost roughly $10,000 — far cheaper than maintaining a dedicated L2.
proto.eth: L1 Must Also Evolve
Leading Ethereum developer proto.eth argues that L1 limitations themselves prevent L2s from reaching full trustlessness (Stage 2).
Key issues:
- Outdated Merkle Patricia Trie structure (addressed by Verkle Trees).
- Transaction receipts and EVM log events optimized for off-chain use but inefficient on-chain.
- Slow finality, forcing L2s to maintain emergency intervention mechanisms with 30-day withdrawal delays.
These constraints make full decentralization difficult.
proto.eth identifies Zero-Knowledge (ZK) technology as the core solution — enabling fast verification without full data disclosure.
He also critiques:
- Isolated research efforts without systemic integration.
- The “headliner model” that prioritizes one or two features per upgrade at the expense of holistic development.
- Overcommitting to future promises.
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Ethereum + AI (Without AGI)
On February 9, 2026, Vitalik revisited his Ethereum + AI thesis.
He explicitly rejected AGI (Artificial General Intelligence) as a goal, calling it a dangerous race without defined objectives. Instead, he promotes d/acc (decentralized acceleration) — technology that strengthens distributed cooperation and collective immunity.
He outlines four pillars:
- Privacy-Enhanced AI
Combine ZK proofs with on-device AI models so users can interact with AI without sending raw data to centralized servers. - Ethereum as AI Economic Infrastructure
AI agents could transact autonomously, hire services from other agents, and build on-chain reputation — independent of centralized corporate control. - Reviving the Cypherpunk Ideal
AI could help users verify smart contracts and transactions automatically, making “Don’t trust, verify” practical again. - AI-Assisted Governance
Complex governance mechanisms often discourage participation. AI could explain proposals clearly and assist users in making informed voting decisions.
What Is Real DeFi?
Why? Because many stablecoins rely on centralized issuers who can freeze assets.
He proposes algorithmic stablecoins as “real DeFi,” with two implementation modes:
Easy Mode
- Fully collateralized by ETH.
- Open participation for market makers.
- Reduced dependence on centralized issuers like Tether and Circle.
Hard Mode
- Backed by diversified real-world assets (bonds, commodities, equities).
- Requires overcollateralization.
- Requires strong diversification to prevent systemic collapse.
His long-term vision extends beyond USD pegs toward baskets of economic indicators — preserving purchasing power rather than mirroring fiat.
However, the collapse of TerraUSD and the broader Terra (LUNA) ecosystem remains a cautionary tale. Strict safeguards are essential.
Is Ethereum a Good Investment in 2026?
Ethereum in 2026 is no longer just a smart contract platform competing on hype cycles. It is undergoing structural transformation at the protocol level. The real question is not whether Ethereum will survive — it’s whether its evolution strengthens its long-term investment case.
Let’s break it down clearly and objectively.
Stronger Technical Foundations
With Glamsterdam and Hegotá, Ethereum is addressing three core pillars:
- Higher transaction throughput
- Improved decentralization
- Stronger censorship resistance
Upgrades such as ePBS (enshrined proposer-builder separation) and Verkle Trees directly tackle long-standing bottlenecks in block production and state storage.
At the same time, native account abstraction is set to dramatically improve usability — allowing gas payments in any token and enabling account recovery mechanisms.
For investors, this matters because technical scalability reduces structural risk. Ethereum is not scaling through patches alone; it is redesigning its base layer architecture.
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Layer 1 Is Scaling Faster Than Expected
In early 2026, Vitalik Buterin publicly acknowledged that the Layer 2–centric scaling thesis from 2020 is no longer fully aligned with current realities.
After recent upgrades:
- Gas limits have doubled compared to previous years.
- Transaction fees have dropped to historic lows.
- Roadmaps now aim toward significantly higher execution capacity.
If Ethereum’s base layer can handle more demand directly, it strengthens ETH’s intrinsic utility and fee generation.
For investors, this shifts the narrative: Ethereum may not depend as heavily on Layer 2 networks for scalability as previously assumed.
Tokenomics: Structural Support
Ethereum’s economic model remains one of its strongest investment arguments.
- A portion of transaction fees is burned.
- Supply issuance is relatively low post-Merge.
- ETH is required for staking and network security.
- Increased on-chain activity increases burn pressure.
Under strong network usage, ETH can become deflationary.
Unlike many tokens whose value depends purely on speculation, ETH has structural demand embedded in the protocol.
Expanding Strategic Positioning
Ethereum is positioning itself beyond DeFi:
- Infrastructure for AI agents and autonomous transactions
- Zero-Knowledge–powered privacy applications
- A decentralized coordination layer
- Foundations for algorithmic and crypto-native stable assets
This broader strategic vision increases Ethereum’s relevance across multiple technological narratives rather than relying on a single sector.
Key Risks to Consider
No investment thesis is complete without examining risk.
- Execution Risk: Major upgrades are complex. Delays, bugs, or coordination failures could impact market confidence.
- Regulatory Risk: Stablecoins, DeFi, and staking may face increasing scrutiny globally.
- Competitive Risk: Alternative L1s, app-specific chains, and ZK-native ecosystems may capture specific verticals more efficiently.
- Market Volatility: Ethereum remains highly correlated with broader crypto cycles. Short-term price swings can be extreme.
Investment Outlook: Short-Term vs Long-Term
Ethereum is unlikely to be a “quick flip” asset in 2026. It behaves more like digital infrastructure than a speculative microcap.
For long-term investors who:
- Believe in decentralized systems
- Understand crypto volatility
- Prioritize structural fundamentals over hype
Ethereum presents a strong risk-adjusted thesis relative to much of the broader market.
For short-term traders, however, macro conditions and sentiment will likely matter more than protocol upgrades.
Final Assessment
Is Ethereum a good investment in 2026?
From a fundamentals perspective, Ethereum appears stronger than it has in years:
- Clear roadmap
- Active developer ecosystem
- Improving scalability
- Strong token economics
- Expanding use cases
However, price performance will still depend on broader market cycles and execution success.
Ethereum in 2026 is less about speculation and more about infrastructure maturation. For investors with a multi-year horizon, it remains one of the most structurally grounded assets in the crypto ecosystem.
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As Ethereum matures in 2026, infrastructure is no longer the only story. Scalability, decentralization, and censorship resistance only matter if users can access them securely and effortlessly.
That’s where KEYRING PRO Wallet fits in.
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