Justin Sun, Founder of TRON and a prominent figure in the cryptocurrency space, recently voiced his concerns regarding Ethereum’s (ETH) ongoing leverage issues on social media platform X (formerly known as Twitter).
In his post, he emphasized the urgency for Ethereum to address the widespread use of leverage within its ecosystem to prevent potential catastrophic failures that could adversely affect decentralized finance (DeFi) protocols and projects.
Ethereum Faces Difficulties
Sun’s comment comes at a critical time when ETH is grappling with significant challenges. Yesterday, on March 10, 2025, Ethereum’s Pectra upgrade on Sepolia testnet faced disruption after an unknown attacker exploited a zero-token transfer edge case, causing the network to mine empty blocks.
The ETH Foundation has also faced scrutiny over its governance structure, particularly following a controversial $165 million investment into DeFi protocols that raised questions about conflicts of interest among key members.
In the recent times, the market has witnessed a huge amount of liquidations in leveraged positions, with over $918 million lost in ETH futures recently. This loss also highlights the risk associated with high leverage in the current market climate.
Justin Sun Urges for an Intervention
Sun wants Ethereum to have an intervention to navigate through these risks, suggesting that proactive measures could prevent a more severe fallout that would harm both investors and the broader DeFi landscape.
Additionally, again Ethereum’s Pectra upgrade is designed to increase the scalability and usability but analysts remain skeptical if these improvements will be sufficient to regain market confidence and competitiveness against other platforms.
Sun also called out for negotiated solution which indicates the need for collaboration among the stake holders to stabilize the ecosystem and promote sustainable growth.
As ETH navigates its way through these difficult times, it must address both internal governance issues and external competitive pressure to maintain its position as a leader in the blockchain space.
The community’s response to Sun’s recommendations could play an important role in shaping Ethereum’s future trajectory as it seeks to reclaim its dominance against these challenges.
Also Read: Ethereum Stablecoin Supply Surges as Hyperliquid Sees Outflow
