Ethereum Layer 2 restructuring news

Key Points:* Eclipse changes leadership, cutting 65% workforce amid ES token decline.

• Sydney Huang becomes CEO amid strategic realignment.
• ES token market cap decreases 32.2% in 30 days. Sydney Huang was appointed CEO of Eclipse Labs after a 65% staff reduction, following past CEO Vijay Chetty’s exit, to realign with its Layer 2 development strategy.

Eclipse’s restructuring highlights strategic shifts in Layer 2 projects, impacting its ES token valuation significantly, amid evolving decentralization trends.

Eclipse Restructures, Cuts Workforce Amid Market Challenges

Eclipse Labs has significantly restructured by appointing Sydney Huang as the new CEO, following Vijay Chetty’s voluntary departure. This change involves reducing 65% of its workforce to align resources with its application development focus. The company aims to enhance app development on Eclipse’s infrastructure.

The restructuring intends to prioritize a “leaner, focused future” by targeting core Ethereum L2 development using Solana’s SVM. This shift aims to optimize Eclipse’s focus on building applications atop its infrastructure, despite facing layoffs.

“Over the past months, we’ve explored opportunities for application development on the network. Going forward, we’ll prioritize building a breakout application on top of Eclipse’s L2 infrastructure.” – Eclipse Labs Press Release

Market reactions were notable after the announcement, impacting the ES token with a 7.8% decrease in the past 24 hours. The company’s effort to restore investor confidence must be monitored, though public statements from leadership are limited at the time of this report.

ES Token Faces Decline; Market Impact Analyzed

Did you know? Eclipse’s decision reflects trends in Layer 2 projects, with similar shifts preceding both recovery and stagnation, influencing how these projects adapt to ecosystem demands and market volatility.

Eclipse’s ES token currently holds a market cap of $23.76 million, with a 24-hour trading volume of $26.60 million, as reported by CoinMarketCap. ES has experienced a 32.7% decline over the past 30 days as of August 26, 2025, illustrating the market’s response.

Eclipse(ES), daily chart, screenshot on CoinMarketCap at 09:05 UTC on August 26, 2025. Source: CoinMarketCap The Coincu research team notes potential outcomes for Eclipse’s strategic focus. Given historical precedents, similar Layer 2 projects have both recovered and struggled following such shifts. The focus remains on Eclipse’s ability to leverage its streamlined resources for application development success.

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