According to Crypto Rover, Vitalik Buterin has released a proposal aimed at simplifying Ethereum’s Layer 1 (L1) architecture to make it more similar to Bitcoin’s streamlined model (Source: Crypto Rover, Twitter, May 3, 2025). This initiative is expected to reduce complexity in Ethereum’s core protocol, potentially improving transaction efficiency and security. Traders should monitor Ethereum’s network upgrade timelines and community response, as increased network simplicity could influence transaction fees, on-chain activity, and ETH price volatility in the short term. Market participants are advised to follow further developments to anticipate potential trading opportunities arising from protocol changes.

According to VitalikButerin, Ethereum's co-founder, the latest discussion on 'Simplifying the L1' emphasizes the importance of reducing Layer 1 blockchain complexity to improve scalability and network security. The referenced post outlines practical approaches such as minimizing consensus-layer features and offloading more functionality to Layer 2 solutions. For traders, this shift could lead to faster transaction finality, lower network fees, and enhanced throughput, potentially influencing ETH price action and Layer 2 token valuations. These technical adjustments are being adopted to address congestion and to enable smoother DeFi and NFT operations, which are key trading sectors (Source: VitalikButerin on Twitter, May 3, 2025).