Ethereum Struggles Amid Foundation Restructuring and Budget Cuts

The Ethereum Foundation's recent restructuring has sent shockwaves through the cryptocurrency market, causing ETH to struggle.

In June 2026, the foundation laid off 54 employees, roughly 20% of its workforce, and cut its annual budget by approximately 40%.

This move is part of a deliberate transition toward an endowment-style organization, with Vitalik Buterin noting that the foundation aims to reduce annual spending from its historical average of 15% of treasury assets toward a 5% baseline by 2030.

Solana co-founder Anatoly Yakovenko commented on X, stating 'Bullish, budget constraints force us to prioritize and focus. Ethereum will not disappear. A smaller, more streamlined Ethereum Foundation will be more decisive, act faster, and be able to adjust direction more quickly'.