Ethereum is advancing its network with two significant upgrades scheduled for 2026: Proposer-Builder Separation (ePBS) and Fork-Choice-Enforced Inclusion Lists (FOCIL). The ePBS feature will debut with the Glamsterdam fork in the first half of the year, aiming to separate block builders from validators to curb the monopolistic influence of large validators and reduce Maximal Extractable Value (MEV) exploitation, which had surged to about $24 million in a single month earlier in 2026.
Following this, the FOCIL upgrade (EIP-7805) is slated for the second half of 2026 under the Hegota upgrade. This mechanism will mandate 16 randomly selected validators to include specific transactions in their blocks, thereby preventing transaction censorship based on profitability and enhancing network fairness and security.
Meanwhile, rival blockchain Cardano is countering with its own development, the Midnight sidechain. This privacy-focused sidechain will utilize a dual tokenomics system to allow users to conceal sensitive transaction details and balances. It will separate private and public computations, aiming to reduce network congestion and lower gas fees. Additionally, Midnight is designed to be regulatory compliant, targeting adoption by privacy-centric institutions. The network is currently in a federated node operator phase, with seven organizations involved, ahead of a planned transition to community-driven block production later in the year.
Market-wise, both ETH and ADA have shown positive momentum amid a broader relief rally. At the time of reporting, ETH traded at $2,042, up 6%, while ADA was at $0.28, up 2.70% over 24 hours. Cardano's sentiment was further buoyed by the recent launch of its USDC-backed stablecoin, USDCx. However, the future price trajectory of both altcoins remains closely tied to Bitcoin's ability to sustain a break above the $70,000 threshold.
