According to Vitalik Buterin on Twitter, Ethereum Layer 1 (L1) scalability discussions are focusing on four main areas: the need for real-time worst-case analysis rather than average-case estimates, lack of formal verification of current models, the high energy cost of proving (~100 kW), and the ambition to increase the L1 gas limit by 10-100x. For traders, these insights suggest that while Ethereum is aiming for much higher throughput, technical and energy hurdles must be overcome before such upgrades could impact transaction speeds or fees. Increased L1 gas limits could eventually lead to lower transaction costs and higher on-chain activity, which could drive trading volumes and affect ETH price volatility. However, until real-time safety and home-level proving feasibility are achieved, traders should monitor for delays in scalability rollouts. (Source: @VitalikButerin, Twitter)

According to @jessepollak, Ethereum Layer 2 solutions have doubled their transaction capacity over the past four months, with a clear roadmap for a further 10-20x increase by the end of the year (Source: Twitter, May 7, 2025). This substantial scaling progress is likely to reduce network congestion and lower transaction fees, making Ethereum-based applications more attractive to traders and investors. The anticipated capacity boost could drive increased trading volumes and liquidity across DeFi and NFT platforms, directly impacting ETH price action and broader crypto market sentiment.