Zcash co-founder and StarkWare CEO Eli Ben-Sasson has offered a pragmatic defense of the Ethereum ecosystem, explaining why developers are unlikely to abandon the second-largest cryptocurrency by market capitalization even as the industry grapples with a prolonged downturn.
His remarks came at a time when Ethereum is facing a significant identity crisis, compounded by record capital outflows from spot ETFs tied to the altcoin.
The broader crypto industry has been experiencing a visible mental divide: while veteran market participants are leaving in large numbers due to a perceived absence of global leadership, traditional financial institutions continue to absorb the sector, eroding the original rebellious narrative that underpinned cryptocurrencies.
Addressing the wave of criticism building within the Ethereum community, Ben-Sasson drew on Winston Churchill's famous quote about democracy, adapting it to describe Ethereum's position in the ecosystem.
In a post on social media dated May 31, 2026, he wrote: "The attacks on Ethereum: Many OGs have accumulated criticism over the years. The continued bear market and general lack of leadership in all of crypto are bringing these angers to the top. Where do I sit? With Churchill who said 'Ethereum is shitty, its only advantage is that…'"
As head of StarkWare — a team that works on scaling multiple blockchains including Zcash, Starknet, and Ethereum — Ben-Sasson made clear he has no doubts about the technology's unique properties and value. Despite all the complaints and grievances from developers, he maintained that Ethereum remains the only viable global standard available.
Ben-Sasson's comments arrived alongside significant downward pressure on Ethereum's price. According to technical data from Binance, the ETH/USDT pair recorded a local low in May, pulling back to the $2,020 area. The decline has been accompanied by capitulation among institutional investors, with net outflows from U.S. spot Ethereum ETFs reaching a record $712.55 million over the past three weeks.
Nevertheless, the stance of the Zcash co-founder reflects a key consensus among developers: the flight of speculative capital from ETFs does not diminish the fundamental value of the network. Ethereum continues to hold its status as an irreplaceable technological layer upon which the future of decentralized finance is expected to be built.
Why it matters
StarkWare works on scaling multiple blockchains, including Ethereum and Starknet, giving Ben-Sasson direct technical exposure to the network he is defending — his position is grounded in hands-on infrastructure work rather than speculation.
Ben-Sasson's argument draws a clear line between speculative capital flows and network fundamentals: record ETF outflows reflect investor sentiment, but do not, in his view, alter Ethereum's role as a foundational technological layer for decentralized finance.
The broader industry divide — veteran participants exiting while traditional financial institutions continue entering — illustrates the tension between Ethereum's original ethos and its growing institutional adoption.
