Marc Arjoon

Boccaccio

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Markets bounced as December rate cut odds swung back above 80%, lifting BTC, equities and gold. In crypto, MegaETH, one of the industry’s more beloved projects, had a slight problem with its predeposit program yesterday.



<h2 class="wp-block-heading">Indices</h2>



Markets tilted risk-on in the latest session, with most major crypto-adjacent sectors posting gains even as BTC (-1.1%) softened slightly. Traditional benchmarks were steady as the S&amp;P 500 eked out a small move higher (+0.9%), while Gold (+0.7%) and the Nasdaq 100 (+0.5%) saw modest strength. Overall tone skewed constructive, led by thematic crypto sectors rather than broad-based flows.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="837" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1024&amp;h=1024" alt="" class="wp-image-110128" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Crypto sector indices showed a clear rotation into high-beta themes. AI was the standout performer, ripping +6.3% on the day, followed by strong moves across RWA (+4.9%) and Crypto Miners (+4.4%). On the downside, Modular networks lagged sharply (-1.7%), followed by Meme (-1.3%) and High-FDV Low-Rev tokens (-1.0%), signaling selective risk-taking rather than a wholesale chase across the curve.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="833" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1024&amp;h=1024" alt="" class="wp-image-110130" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The moves fit a familiar narrative as investors gravitate toward sectors with strong storytelling momentum, such as AI, RWA, and miners (also AI), while trimming from overextended or lower-quality pockets of the market. With BTC drifting sideways and macro catalysts sparse, sector dispersion continues to dominate short-term performance.



<h2 class="wp-block-heading">Market Update: Klarna</h2>



Klarna announcing KlarnaUSD on <a href="https://blockworks.co/news/tempo-stripe-paradigm-planned-l1">Tempo</a> (the new Stripe/Paradigm payments chain) is a clean validation of the “stablecoin rail-replacement” trade that’s been building behind the scenes. With McKinsey pegging stablecoin settlement at <a href="https://www.mckinsey.com/industries/financial-services/our-insights/the-stable-door-opens-how-tokenized-cash-enables-next-gen-payments">$27 trillion</a> annually, the narrative is shifting from speculative infra to industrial-scale payments plumbing. Klarna’s 114 million users and $118 billion GMV aren’t crypto-native flow, but they’re exactly the kind of volume that can reshape onchain settlement curves once mainnet access opens. This initiative could help improve its weak stock performance by cutting payment costs and opening new revenue streams through faster, cheaper global transactions. It also signals innovation and business-model diversification, which may boost investor confidence after a period of poor market sentiment.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1024&amp;h=1024" alt="" class="wp-image-110129" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Tempo’s positioning as a purpose-built payments L1 (low latency, predictable fees, Stripe-grade compliance rails) sets up a clear competitive lane vs. Solana/ETH L2s on consumer payments. A Stripe + Klarna distribution stack is a real threat — not only to crypto protocols, but to entities working on the $120 billion cross-border segment that Klarna is explicitly hunting. The interesting angle is that KlarnaUSD is built via Bridge’s Open Issuance, keeping issuance modular and likely multichain over time.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="506" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png" alt="" class="wp-image-110125" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=900 900w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=80 80w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure>



For crypto markets, this reopens the “fintech-stablecoin adoption” trade that last peaked during PayPal’s PYUSD rollout. Watch for rotation into payment-aligned infra, high-throughput chains, issuer infra, compliance middleware and real-world settlement protocols. However, despite the institutional appetite, the regulatory overhang isn’t gone, as a bank-issued stablecoin hitting global distribution will likely trigger scrutiny in both the EU and the US. Either way, watch Tempo ecosystem assets and payment-rail narratives — Klarna just put real enterprise weight behind onchain settlement.



<h2 class="wp-block-heading">Oops</h2>



Yesterday, there was an unfortunate mistake with the MegaETH predeposit process. The predeposit launch failed at first due to an incorrect SaleUUID inside the predeposit contract, which blocked all transactions until a multisig update was executed. Once fixed, Sonar’s KYC service began rejecting traffic because of a misconfigured rate limit, leaving users unable to fund for about 23 minutes. When service resumed, the $250 million cap filled almost instantly from users who had been refreshing the site. The team planned to raise the cap to $1 billion in the next hour, but the transaction was executed about 30 minutes early by chud_eth.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="640" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1024&amp;h=1024" alt="" class="wp-image-110127" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Once a Safe transaction has the required signatures, anyone can broadcast/execute it, including someone not on the multisig. Deposits surged again, and the team attempted to control inflows by lowering the cap to $400 million, then $500 million, with the latter taking effect and filling. Because KYC issues were still affecting users, the planned expansion to $1 billion was canceled. A withdrawal page is being prepared for those who want to remove funds.



Despite this unfortunate situation, MegaETH’s USDm experiment seems to have begun! For context, USDm is a partnership between MegaETH and Ethena, and represents Ethena’s first (popular) attempt at offering white-labelled stablecoins. USDm is MegaETH’s native/aligned stablecoin, where underlying Treasury bill yield generated by USDm is set to be used to subsidize gas costs and internalized as revenue.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1439" height="697" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1024&amp;h=1024" alt="" class="wp-image-110126" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1439 1439w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=80 80w" sizes="auto, (max-width: 1439px) 100vw, 1439px" /></figure>



Over the past day, MegaETH generated ~$55,000 in revenue off USDm, putting it in seventh place in terms of highest revenue-generating blockchains. Building out basic primitives on your own chain is a great way for chains to monetize more efficiently, as revenue through transaction fees has proven to be highly volatile and relatively low.



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0xResearch Newsletter

Klarna steps into stablecoins

Macauley Peterson

Ethereum just lost one of its most prolific researchers, Dankrad Feist, to Tempo — the Stripe/Paradigm co-production that’s building a purpose-built EVM chain for payments.&nbsp;



The <a href="https://blockworks.co/news/dankrad-feist-joins-tempo">move</a> has reignited debate in the <a href="https://blockworks.co/tag/ethereum">Ethereum</a> community: Is a venture-owned, EVM-compatible chain a threat to Ethereum mainnet and talent pool — or a healthy forcing function that clarifies what Ethereum should (and shouldn’t) chase?



On Monday, Ethereum co-founder Joe Lubin <a href="https://x.com/ethereumJoseph/status/1980279130638672175">weighed in</a> with a measured counterpoint, arguing that venture capital both extracts and contributes, and reaffirming Ethereum’s position as the “rigorously decentralized, credibly neutral” base layer.&nbsp;



Prominent Ethereum Foundation voices, from <a href="https://blockworks.co/tag/vitalik-buterin">Vitalik Buterin</a> on down, have been united in praise for Feist. Others worry about the growing gravitational pull of “corpo-chains” and their potential to poach both talent and users.



What happens next is key: Will Tempo evolve into a proving ground that strengthens Ethereum, or a parallel system that siphons value away?



<h2 class="wp-block-heading">The departure</h2>



Backing up: On Friday, Feist <a href="https://x.com/dankrad/status/1979133618254405775">announced</a> he’s joining Tempo while staying on as a research advisor to the Ethereum Foundation. His note framed Tempo as aligned with Ethereum’s values and suggested open-source work could flow back upstream.



The EF messaging around the move smells of a concerted effort to download its impact. Everyone from Vitalik Buterin to a range of core developers offered kudos.



“Dankrad has been an excellent researcher and has made immensely valuable contributions to the Ethereum that we know and love today, including <a href="https://blockworks.co/news/ethereum-cancun-upgrade-blobs">Danksharding</a>, consensus research and much more,” Buterin <a href="https://x.com/VitalikButerin/status/1979140260622930348">said on X</a>, wishing Feist well.



Other prominent EF voices <a href="https://x.com/barnabemonnot/status/1979163259031753181">Barnabé Monnot</a>, <a href="https://x.com/adietrichs/status/1979174596864594039">Ansgar Dietrichs</a> and <a href="https://x.com/ralexstokes/status/1979260592319017330">Alex Stokes</a> praised Dankrad’s contributions, with Stokes calling it an “opportunity for Ethereum and Tempo to be closer together.”



Within hours, the conversation expanded — from one career move to first principles: What should Ethereum optimize for, as venture-backed chains sprint toward payments?



<h2 class="wp-block-heading">VC heavyweights vs. credible neutrality</h2>



Lubin’s intervention today stood out for both tone and specificity.&nbsp;



In his words, “the goal of [Paradigm] and many other VCs is to suck as much value as possible from the Ethereum and broader ecosystem, while also adding value to the ecosystem in the service of maximizing their own gains,” and calling the hiring “natural and inevitable.”



His conclusion was a restatement of Ethereum’s mission — to be a “rigorously decentralized, credibly neutral digital asset settlement ledger infrastructure.”



That’s something corporate chains can never be, and therefore they aren’t existential threats, but complementary.



“Corpo-chains will be important infrastructure built on top of neutral permissionless chains,” Lubin said.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">There seems to be a lot of fuss about <a href="https://twitter.com/tempo?ref_src=twsrc%5Etfw">@tempo</a>, and seems like they threw a lot of money around to make everybody be a launch partner, while people claiming it’s an <a href="https://twitter.com/ethereum?ref_src=twsrc%5Etfw">@ethereum</a> killer. I think it needs to be clear that this is currently a PoA chain running in Testnet. I would love… <a href="https://t.co/5fkuxltQPN">pic.twitter.com/5fkuxltQPN</a>&mdash; Fabian Vogelsteller (@feindura) <a href="https://twitter.com/feindura/status/1979961609549463615?ref_src=twsrc%5Etfw">October 19, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Bankless’ David Hoffman <a href="https://x.com/TrustlessState/status/1979900912903586286">has doubts</a> about the supposed synergy Feist promises. “I’d like to hear the leadership at Tempo elaborate on that further, because I&#8217;m not buying it,” Hoffman said.



The hinge of his argument is sovereignty: If a corporate L1 captures the “incoming flow of trillions of dollars of stablecoins,” the value accrues there first. He also points to Ethereum’s special regulatory positioning: “Only Ethereum and Bitcoin, and – maybe if you squint – a few other chains, operate above the law – anyone’s law.”



Yes, Tempo may — and probably will — “grow the pie,” but will any of that growth route to Ethereum’s settlement, security and culture, or redound to ETH’s benefit?



<h2 class="wp-block-heading">Don’t race Tempo on payments</h2>



A cluster of voices argues Ethereum shouldn’t try to compete with the Tempos of the world head on. Nick Almond, for instance, <a href="https://x.com/DrNickA/status/1979492079194546448">suggested</a> a return to Ethereum’s roots: “It needs to become the cypherpunk chain.”



Its unique selling point, 0xBreadguy <a href="https://x.com/0xBreadguy/status/1979186891049308574">agrees</a>, is that, “there will never be a chain more decentralized, credibly neutral and censorship resistant and live as Ethereum.”



In other words, let TradFi have their permissioned playground. Differentiation is good. If payments at scale require speed, distribution, and regulatory alignment that Ethereum won’t or can’t offer, the play is to double down on what only Ethereum is uniquely positioned to deliver, all while scaling on its own terms.



On this view, Tempo is a productive sandbox, argues GregTheGreek, who sketched a “<a href="https://blockworks.co/price/ksm">Kusama</a> thesis” for the chain, referring to the <a href="https://blockworks.co/tag/polkadot">Polkadot</a> “canary network.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I think Tempo will be a net positive for Ethereum If the community allows it 👇 I think <a href="https://twitter.com/ajwarner90?ref_src=twsrc%5Etfw">@ajwarner90</a> got a lot right in his post, but let&#39;s talk about the actual value add no one wants to talk about.<a href="https://t.co/zh5CQzuZP0">https://t.co/zh5CQzuZP0</a> There&#39;s something deeply special about <a href="https://twitter.com/gakonst?ref_src=twsrc%5Etfw">@gakonst</a> and…&mdash; GregTheGreek.eth (@gregthegreek) <a href="https://twitter.com/gregthegreek/status/1979296662922117550?ref_src=twsrc%5Etfw">October 17, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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“Reth will become extremely feature rich, all the EIPs we want but can&#8217;t get, batteries included.” He suggests that real-world load on a high-velocity venue could produce open-source contributions to the EVM that Ethereum can adopt.



“We need to accept they&#8217;ll be battle-testing every possible change, and prove (or disprove) the viability at scale,” Greg <a href="https://x.com/gregthegreek/status/1974398708784549948">said</a>.



But not everyone is so bullish. Follow the incentives 0xBreadguy says: “I do not believe in the ‘it&#8217;s all EVM bro’ narrative. Tempo, Avalanche, Binance, Monad et al will contribute ~0 value to $ETH.”



The dichotomy carries over to disparate views on Ethereum’s place in the sweep of technological change, and who chooses to work on it. Feist’s career move <a href="https://x.com/conorsvensson/status/1979903540106809806?s=46&amp;t=yjAdM2ddX0KgGQimu7jcDQ">provoked</a> Conor Svensson of Enscribe to reminisce, “the reason why I was first pulled into Ethereum, was that it reminded me of Linux.”



“Linux went on to power vast swaths of the internet, but it didn’t make everyone rich,” Svensson said. “However, to most of those working on it, financial motivations were never the primary reasons for working on what they were.”



<h2 class="wp-block-heading">Talent, compensation and retention</h2>



Even if one is not motivated solely by money, it’s a factor.&nbsp;



“Ethereum core devs aren’t paid well enough, imagine earning peanuts for maintaining and improving 400 billion $ protocol,” Ouranos Capital <a href="https://x.com/ouranoscapital/status/1979181808273998226">declared</a>.



Not to worry. The Ethereum Foundation’s Tomasz Stańczak <a href="https://x.com/tkstanczak/status/1979237879038775655">pointed</a> to a recent <a href="https://www.linkedin.com/in/arpinet/">Head of Talent</a> hire to help attract world-class candidates — and better support both departures and returns. It’s a pragmatic acknowledgment: the competition for research talent is now an issue.



At the same time, Trent van Epps at the Protocol Guild <a href="https://x.com/trent_vanepps/status/1979946429771559184">flagged</a> the pressure: “We likely have a counterfactual where top shelf talent never even considers core [developer roles] because of the [compensation] gap.” The Protocol Guild <a href="https://blockworks.co/news/important-ethereum-devs-underpaid">has been focused on this problem</a> in recent years.



As far as Feist goes, no need to panic, Ethereum advocate DCinvestor <a href="https://x.com/iamDCinvestor/status/1979321926515593452">said</a>: “Change is healthy.”



“EF and Ethereum research and core dev jobs should not be for life,” he said, adding, “they should constantly cycle in new talent and supporting future leaders as they grow their skillset.”



The funding debate <a href="https://x.com/keonehd/status/1979348825258029425?s=46">surfaced</a> a spicy take from Monad founder Keone Hon, who proposed Ethereum should “put in a hard fork to add 0.25% annual inflation to fund research.”&nbsp;



Hoffman’s Bankless partner Ryan Sean Adams, poured cold water on that idea, <a href="https://x.com/RyanSAdams/status/1979357111994978449">saying</a> it “will never happen,” because it “would be an arbitrary monetary policy change directed to a specific group of individuals — [a] vector for corruption — same as fiat.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=1024&amp;h=1024" alt="" class="wp-image-109271" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-57.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">The ether supply growth rate has leveled off in the past year | Source: <a href="https://app.blockworksresearch.com/analytics/team/charts/1291">Blockworks Research</a></figcaption></figure>







There’s the rub: Matching corporate compensation with protocol-level funding runs straight into Ethereum’s commitments to predictability and neutrality.



That’s where Lubin’s framing and the EF’s talent posture intersect. It’s not “Tempo vs Ethereum” so much as “incentives and culture vs churn.” The chain with the best combination of funding, mission and network effects can still win the hiring battles of the next decade.



<h2 class="wp-block-heading">Stripe’s distribution vs Ethereum’s moat</h2>



Tempo isn’t just well-funded, it presumably will have distribution. As Gabriel Shapiro <a href="https://x.com/lex_node/status/1979947572333781375">noted</a>: “If it can put a meaningful [percentage] of [Stripe’s volume] onchain, and also put a meaningful [percentage] of a few partners&#8217; volumes onchain, it could quickly be rivaling Solana and Ethereum in volumes.” It’s a clean articulation of the “distribution is greater than product” thesis.



But that scale cuts both ways. “BIG IF,” <a href="https://x.com/wmougayar/status/1979948987382964464">countered</a> William Mougayar, at the Ethereum Market Research Center. He argues that “payments is not a sweet spot for blockchains,” and that people “severely underestimate the switching costs and barriers to entry” — wallets, developer trust, tooling, nodes, clients, and culture — all part of Ethereum’s compounding moat.



The human capital moat matters too. As Gnosis’ Martin Köppelmann <a href="https://x.com/koeppelmann/status/1979996805015142697">put it</a>, “I am not worried about another L1. But yes, I am worried about a number of people who used to embody Ethereum, leaving.”



<h2 class="wp-block-heading">Troubling exit or healthy evolution?</h2>



From today’s vantage, it’s too early to declare Feist’s jumping ship for Tempo bullish or bearish for Ethereum. What’s clear is that the move forced Ethereum’s community to reassert what makes it special — and where it should or shouldn’t compete.



The most constructive stance may be to treat Tempo as both a competitor and a lab, useful for the mother ship, so long as it doesn’t outsource Ethereum’s identity to corporate governance.



There are many outstanding questions, and Tempo’s technical details are still scant.



Permissionless trend: Will Tempo move from PoA testnet to a permissionless validator set? Does Feist’s hiring increase the prospect of eventually moving to an Ethereum layer-2? (Blockworks reached out to Paradigm with questions, but they declined to comment beyond <a href="https://blockworks.co/news/tempo-stripe-paradigm-planned-l1">previous remarks</a>.)



Upstreaming: Will EVM/Reth innovation beget useful EIPs or merged features on Ethereum L1?



Economic: Will there be any ETH-denominated flows that make “grow the pie” mean grow ETH too?



If yes, “exit” begins to look like “evolution,” a proving ground that helps Ethereum scale faster while preserving what only it can be. If not, Ethereum will view Tempo like Hoffman: “a privately-owned corpo-chain.”



Either way, Ethereum’s best move is to keep playing its own game: keep neutrality sacred, scale responsibly, and keep giving the best researchers a reason to stay.



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decentralization

Ethereum reckons with Dankrad Feist’s move to Tempo

Blockworks

Tempo, a payments-focused blockchain incubated by Stripe and Paradigm, has reportedly raised $500 million in a Series A round led by Greenoaks and Thrive Capital.



<a href="https://fortune.com/crypto/">Fortune</a> reported that the round values Tempo at $5 billion. Citing sources familiar with the round, Fortune said that other investors include Sequoia Capital, Ribbit Capital, and SV Angel.&nbsp;



Per the report, Paradigm and Stripe did not “contribute capital” as part of the Series A round.



The round is the latest in an especially busy period for crypto-related venture investing. According to Blockworks Research, more than $16 billion has been invested in crypto startups and projects in Q3 2025.&nbsp;



Tempo positions itself as a payments-optimized blockchain, built to integrate natively with fintech rails rather than decentralized finance protocols. The project is reportedly designed to enhance transaction throughput and compliance for digital money movement, an approach that echoes Stripe’s broader ambition to connect traditional payment systems with crypto infrastructure.



Stripe’s crypto payments ambitions have also grown via its acquisition of Bridge in a deal reportedly valued at $1.1 billion. Earlier this week, Bridge said that it had <a href="https://blockworks.co/news/stripes-stablecoin-occ">applied</a> to the US government for a national trust bank charter.&nbsp;Earlier Friday, Ethereum core researcher Dankrad Feist <a href="https://blockworks.co/news/dankrad-feist-joins-tempo">announced</a> that he was departing the Ethereum Foundation to take a role at Tempo, though he will continue to serve as an advisor.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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