Ethereum’s share of the real-world asset market dropped sharply during the first quarter of 2026 as competing blockchains attracted more tokenized asset activity. At the same time, the Ethereum Foundation reduced its direct influence over the ecosystem, triggering debate across the crypto community about Ethereum’s future direction.
Ethereum’s active RWA market share declined from 93.4% at the beginning of 2025 to 61.1% by the end of Q1 2026. Despite the decline, Ethereum still holds the largest RWA market capitalization at nearly $18.7 billion.
Meanwhile, networks including BNB, Solana, Stellar, Avalanche, ZKsync Era, Liquid Network, and Arbitrum expanded their share of tokenized asset activity across the market.
The Ethereum Foundation has recently reduced its central role within the network’s ecosystem. The organization stated in its March 2026 mandate that its goal is ‘to reduce the Foundation’s relative influence over time.’
The move aligns with Ethereum’s wider push toward decentralization. The Foundation wants the network to continue operating, upgrading, and securing itself without depending heavily on a single organization. As a result, recent departures from the Foundation have not automatically signaled instability. Some observers view the transition as part of a broader effort to reduce centralized control within Ethereum’s governance structure.
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Ethereum’s changing approach arrives as the blockchain industry becomes increasingly multi-chain. Rival networks continue attracting developers and tokenized asset issuers seeking lower costs and faster transaction speeds.
Even so, Ethereum remains the largest blockchain by RWA market capitalization. Supporters of the network’s long-term strategy argue that Ethereum may succeed by operating as a neutral base layer rather than controlling every market segment directly.
A wave of high-profile exits from the Ethereum Foundation recently intensified criticism from parts of the crypto community. Several industry figures publicly questioned the organization’s leadership structure and communication practices.
Andy, co-founder of the Rollup podcast, posted on X, ‘What’s happening at the EF?’ Soon after, crypto community figure Joon Ian Wong questioned why the Foundation could not ‘just be transparent about things.’
The criticism revived long-running concerns surrounding the Switzerland-based nonprofit, which coordinates research, funds development, and supports network upgrades for Ethereum.
Unlike traditional corporations, the Ethereum Foundation operates with a decentralized structure. Supporters argue the model protects Ethereum’s neutrality and prevents concentrated authority over the blockchain.
Still, some community members fear that losing experienced contributors could affect future upgrades, developer morale, and software quality across the ecosystem.
The movement of developers toward competing ecosystems, especially Solana, has also drawn attention inside the industry. Some observers believe the trend could signal a changing momentum across blockchain development.
At the same time, allegations from Kain Warwick described internal leadership struggles and possible talent retention problems inside the Ethereum Foundation. The claims have not received independent confirmation from the Foundation or Vitalik Buterin.
The allegations fueled additional discussion about Ethereum’s internal stability during a period of growing competition among blockchain ecosystems.
For developers and investors, the condition of the Ethereum Foundation remains closely connected to Ethereum’s long-term development path. Industry participants now await possible responses from the Foundation and its leadership as scrutiny around the organization continues to grow.
Ethereum’s RWA market share has fallen as rival chains gain ground, while the Ethereum Foundation works to reduce its own influence. Even so, Ethereum still leads in RWA market cap, and its next phase may depend on whether it can stay strong without central control.