Ethereum After the Merge: How Restaking and Rollups Are Rebuilding Crypto’s Core Infrastructure
In this article, we explore how post-Merge upgrades, layer-2 networks, restaking protocols, and evolving DeFi and NFT applications are reshaping Ethereum into a programmable base layer for global finance, identity, and coordination—while regulators, institutions, and developers all race to keep up.
Ethereum’s September 2022 Merge—its long‑planned transition from proof‑of‑work (PoW) to proof‑of‑stake (PoS)—was not the finish line, but the starting gun for a new infrastructure cycle. By 2025, with major upgrades like Shanghai/Capella (enabling withdrawals), Dencun (data‑availability blobs), and rapid progress on layer‑2 (L2) rollups, Ethereum has shifted from “experimental money on the internet” toward a general‑purpose settlement and data layer for programmable finance and on‑chain applications.
The narrative in this cycle is different. Instead of meme coins and unsustainable yields, developer and media attention has pivoted toward scalability, security, restaking, and real‑world adoption. Crypto‑native outlets such as CoinDesk, CryptoNews, and Crypto Coins News (CCN), along with mainstream tech media like Wired, The Verge, and TechCrunch, increasingly frame Ethereum as critical infrastructure rather than a speculative casino.
Mission Overview: Ethereum as a Global Coordination Layer
Ethereum’s post‑Merge mission can be summarized as:
- Provide a secure, credibly neutral base layer for settlement and data availability.
- Scale execution via rollups and L2s, rather than by compromising decentralization on L1.
- Enable new forms of finance, identity, and coordination that are open, programmable, and globally accessible.
- Support real‑world assets (RWA), institutional finance, and consumer apps without sacrificing core crypto values.
“In the long term, Ethereum wants to be the secure and credibly neutral base layer for the decentralized internet.”
Technology: From the Merge to Rollups, Danksharding, and Restaking
From Proof-of-Work to Proof-of-Stake
The Merge replaced energy‑intensive PoW mining with PoS validation, where validators stake ETH to secure the network and earn rewards. This:
- Reduced Ethereum’s energy consumption by over 99% (according to the Ethereum Foundation).
- Shifted security incentives from hash power to capital at stake.
- Laid the foundation for future scalability upgrades (Surge, Verge, Purge, Splurge roadmap).
Rollups and the Dencun Upgrade
Ethereum’s scalability strategy is “rollup‑centric.” Rollups batch many transactions off‑chain and submit proofs to Ethereum, preserving security while multiplying throughput. Two main types dominate:
- Optimistic rollups (e.g., Optimism, Arbitrum) assume transactions are valid by default, with a challenge window for fraud proofs.
- Zero‑knowledge (ZK) rollups (e.g., zkSync, Scroll, Linea) use succinct cryptographic proofs to verify large batches of transactions efficiently.
The March 2024 Dencun upgrade introduced EIP‑4844 “proto‑danksharding,” adding cheaper “blob” space for L2 data. This dramatically lowered rollup fees and set the stage for full danksharding, where Ethereum becomes a high‑bandwidth data availability (DA) layer for dozens or hundreds of rollups.
Restaking and Shared Security
A major new frontier is restaking, pioneered by protocols such as EigenLayer. Restaking allows validators or liquid staking token (LST) holders (e.g., stETH, rETH, cbETH) to “re‑use” staked ETH to secure additional protocols known as Actively Validated Services (AVSs)—such as:
- Data availability layers and sidechains.
- Oracle networks and cross‑chain bridges.
- Middleware like sequencing or ordering services for rollups.
In theory, restaking creates:
- Capital efficiency: the same underlying ETH secures multiple systems.
- Shared security: new protocols can “borrow” Ethereum’s economic security without bootstrapping their own token.
- Composability: AVSs can stack on common security primitives, accelerating innovation.
“Restaking turns Ethereum into a marketplace for decentralized trust, where services can tap into a common pool of cryptoeconomic security.”
Risks and Critiques of Restaking
Critics—on research forums, X (Twitter), and platforms like Hacker News—raise serious concerns:
- Systemic risk: If many AVSs rely on the same restaked ETH, correlated failures or slashing events could cascade.
- Centralization: Large validators and LST providers may gain outsized influence over multiple layers of the stack.
- Complexity: Users and even sophisticated funds may struggle to understand the full risk surface of multi‑layered restaking setups.
Ethereum core researchers, including Vitalik Buterin, have cautioned that restaking used directly in the consensus layer could endanger Ethereum’s neutrality and liveness. The current consensus among many researchers leans toward strict boundaries: Ethereum secures Ethereum; restaking should avoid creating implicit “too‑big‑to‑fail” dependencies back onto L1.
Scientific and Economic Significance: Ethereum as Crypto Infrastructure
From Hype Cycles to Infrastructure Cycles
Earlier crypto cycles (2013–2021) were dominated by:
- Speculative tokens and meme coins.
- Yield‑farming strategies with unsustainable emissions.
- NFT bubbles centered on profile pictures and collectibles.
The 2023–2025 phase is more of an infrastructure cycle. The emphasis has shifted to:
- Rollup architectures and interoperability.
- Stable and regulated fiat on‑ramps.
- Security audits, formal verification, and reliable oracles.
- Integration with traditional finance via RWAs and tokenized instruments.
DeFi’s Maturation
DeFi in 2025 is less about “number go up” and more about building resilient, modular financial primitives:
- On‑chain credit markets that resemble over‑collateralized lending and credit lines, with clearer risk models.
- Tokenized real‑world assets (RWA) such as short‑term US Treasuries, money‑market funds, real estate cash flows, and private credit pools.
- Derivatives and structured products that hedge interest‑rate, FX, and crypto‑specific risk.
Financial and tech journalists at outlets like Financial Times Crypto Finance and The Wall Street Journal Markets now regularly cover pilots where banks experiment with tokenized bonds or on‑chain settlement rails, often on Ethereum‑compatible networks.
NFTs Beyond Collectibles
NFT activity has diversified:
- Gaming assets: interoperable items, land plots, skins, and characters used across on‑chain or hybrid games.
- Music and IP rights: NFTs that embed royalty rules and revenue shares to artists and fans.
- Ticketing and memberships: verifiable, non‑fraudulent tickets and passes; dynamic NFTs that update over time based on usage.
Platforms are also testing subscription models, where NFTs grant access to ongoing content or communities. This aligns Ethereum with broader creator‑economy trends.
Milestones on Ethereum’s Post-Merge Roadmap
Ethereum’s roadmap is often summarized as: Merge, Surge, Verge, Purge, Splurge. Several of these have already seen concrete progress.
Key Completed or Ongoing Milestones (as of late 2025)
- The Merge (2022) – PoS activation; energy and issuance transformation.
- Shanghai/Capella (2023) – Enabled withdrawals for staked ETH, de‑risking staking for participants.
- Dencun (2024) – Introduced proto‑danksharding (EIP‑4844), significantly reducing rollup fees.
- Rollup Ecosystem Maturation (2023–2025) – Mainstream user flows on Optimism, Arbitrum, Base, zkSync, Scroll, Linea, and others.
- Restaking Ecosystem Emergence (2023–2025) – Launch and expansion of EigenLayer and similar projects, plus a growing AVS marketplace.
On top of these, the community continues active research into:
- Full danksharding and data‑availability sampling.
- Light‑client improvements for mobile and low‑resource devices.
- Better account abstraction and smart‑contract wallets for mainstream usability.
How Media Frames These Milestones
Mainstream tech coverage tends to highlight:
- The environmental win from PoS.
- Reliability of L2s as “quasi‑blockchains” for consumer dApps.
- Regulatory overhang around staking and DeFi yields.
Crypto‑native media, by contrast, dives into:
- MEV (Maximal Extractable Value) and builder‑searcher ecosystems.
- Sequencer decentralization for rollups.
- Restaking design patterns and AVS risk frameworks.
“We’re watching Ethereum become to crypto what Linux is to operating systems—a base layer for countless specialized environments.”
Challenges: Regulation, Security, and Centralization Pressures
Regulatory Scrutiny
Regulators in the US, EU, and Asia have intensified focus on staking, stablecoins, and DeFi:
- Staking services – Questions over whether pooled staking products constitute securities or investment contracts.
- Stablecoins – Concerns about reserves, systemic risk, and integration into payment systems.
- DeFi protocols – Debates over whether front‑end operators, DAO participants, or developers bear compliance obligations.
Publications like The Next Web and Wired regularly publish explainers analyzing new regulatory proposals and enforcement actions, especially their impact on Ethereum‑based services.
Security and Complexity
The overall attack surface has expanded:
- Multiple rollups with different security assumptions.
- Bridges connecting Ethereum to other chains and L2s.
- Restaking protocols and AVSs with complex slashing conditions.
To respond, the ecosystem invests heavily in:
- Formal verification tools for smart contracts.
- Bug bounties and third‑party audits.
- On‑chain monitoring and circuit‑breakers for protocols.
Centralization Risks
Despite PoS and L2 diversification, centralization risks persist:
- Concentration of staked ETH in a few large liquid staking providers.
- Centralized rollup sequencers controlled by core teams or companies.
- Cloud hosting dependencies for nodes and infrastructure providers.
Researchers and builders are exploring solutions:
- Decentralized sequencing and shared sequencing layers.
- Client diversity and light‑client‑friendly designs.
- Encouraging solo staking via more user‑friendly tooling.
Media, Social Narratives, and Education
Crypto‑native and mainstream media increasingly converge on Ethereum as a story of infrastructure and policy, not just speculation. Tech reporters at Wired, The Verge, and TechCrunch often highlight:
- How rollups reduce fees and enable consumer‑grade apps.
- The climate implications of PoS vs. PoW.
- Regulatory crackdowns and their unintended consequences.
Meanwhile, educators and analysts are active on:
- YouTube – Long‑form explainers on L2s, gas dynamics, and Ethereum upgrades (e.g., channels like Finematics or Bankless).
- TikTok and Shorts – Short clips explaining staking, restaking, or wallet safety.
- Podcasts – Deep dives with researchers, founders, and regulators.
This educational content is crucial: Ethereum’s stack is now too complex for the average user to understand purely via wallet UIs. High‑quality explainers help bridge the gap between researchers, developers, and the broader public.
“Crypto is not just about coins; it’s about building a parallel financial and information system on open infrastructure.”
Practical Tooling and Learning Resources
For developers, analysts, or investors who want to dive deeper into Ethereum’s new infrastructure cycle, a well‑equipped toolkit and reading list is invaluable.
Developer and Power-User Tools
- Ethereum.org Developer Portal – Official docs, tutorials, and tooling guides.
- Optimism and Arbitrum documentation – For building on optimistic rollups.
- EigenLayer Docs – Technical details on restaking and AVS design.
- DeFiLlama – On‑chain analytics across DeFi and L2 ecosystems.
Helpful Hardware and Reading (Amazon Affiliate Recommendations)
For anyone running nodes, experimenting with staking, or simply learning about Ethereum’s architecture, these well‑regarded resources can be useful:
- Mastering Ethereum: Building Smart Contracts and DApps by Andreas M. Antonopoulos & Gavin Wood – A foundational technical book on Ethereum and smart contracts.
- Ledger Nano X Hardware Wallet – Popular hardware wallet for securely storing ETH and interacting with DeFi via WalletConnect.
- Mini PC with 16GB RAM and 512GB SSD – A compact machine suitable for running light or archival Ethereum nodes at home, depending on configuration.
Always verify hardware specs and firmware sources, and follow security best practices when dealing with private keys or validator setups.
Conclusion: Ethereum’s New Crypto Infrastructure Cycle
Ethereum’s post‑Merge evolution marks a decisive shift from speculative mania to long‑term infrastructure building. The combination of PoS, rollup‑centric scaling, and restaking‑driven shared security is transforming Ethereum into a foundational layer for decentralized finance, identity, and digital property.
The coming years will likely be defined not by headline‑grabbing token rallies, but by:
- The degree to which rollups and L2s become truly decentralized and interoperable.
- Whether restaking can deliver shared security without introducing unacceptable systemic risks.
- How effectively regulators, institutions, and open‑source communities can collaborate—or clash—over standards and oversight.
For developers, policymakers, and users alike, understanding Ethereum in 2025 means thinking of it less as “a coin” and more as a programmable, credibly neutral infrastructure layer. The crypto conversation has matured; now the infrastructure must prove it can carry the weight.
Additional Insights: How to Think Critically About Ethereum’s Future
To navigate this evolving landscape, it helps to regularly ask a few critical questions:
- Who controls the key infrastructure? – Look beyond decentralization slogans and examine validator sets, sequencer operators, and governance token distribution.
- What are the security assumptions? – Understand the difference between Ethereum L1 guarantees and those of each L2, bridge, or restaking AVS you rely on.
- How do incentives align? – Follow the money: which actors are rewarded for which behaviors, and what emergent risks or power dynamics does that create?
- What is the regulatory path? – Watch how courts, agencies, and legislatures draw lines between commodities, securities, and infrastructure providers.
- Does this solve a real problem? – Favor protocols and applications with clear users, tangible benefits, and resilience under stress, not just clever tokenomics.
Approaching Ethereum’s ecosystem with this analytical lens turns the noise of daily market moves into a structured learning process—and positions you to understand, rather than simply react to, the next phase of the crypto infrastructure cycle.
References / Sources
Further reading and primary sources on Ethereum’s post‑Merge evolution:
- Ethereum.org – Roadmap
- Ethereum.org – The Merge
- Ethereum Foundation Blog
- Vitalik Buterin’s Blog
- EigenLayer – Restaking Protocol
- Bankless – Ethereum & DeFi Analysis
- Paradigm – Research on Rollups and Crypto Infrastructure
- Wired – Ethereum Coverage
- The Verge – Crypto & Ethereum Section
- TechCrunch – Ethereum Articles
