Ethereum is set to prioritize Layer 1 (L1) scaling and institutional privacy enhancements in 2026, according to Tomasz Stanczak, founder of Nethermind. In an interview, Stanczak highlighted that while researcher Dankrad Feist considers L1 scaling incomplete, Ethereum is now focusing on achieving faster finality and enhancing privacy features to cater to institutional needs. Dedicated teams have been established to address these strategic priorities.