Is Ethereum Dead? (2025)

Since Ethereum’s creation, the cryptocurrency has seen high volatility. In this guide, we’ll break down everything you need to know about the Ethereum ecosystem in 2025 — and explore ETH’s long-term prospects!

Why are people saying Ethereum is dead?

Following Donald Trump’s victory in the 2024 US presidential election, the prices of many popular cryptocurrencies skyrocketed. However, the price of ETH stayed relatively stagnant — which caused many investors to label Ethereum ‘dead’. 

Let’s look at the argument for and against Ethereum being dead. 

The bear case for Ethereum 

Many popular memecoins and projects no longer build directly on Ethereum. 

Instead, they build on competing blockchains like Solana that offer faster speeds or Ethereum Layer-2 solutions — networks built on top of Ethereum designed specifically to offer higher speeds than the base blockchain. 

Why is Solana becoming popular?: Solana has become one of the most popular smart contract blockchains due to its fast speeds. While Solana can handle more than 2,600 transactions per second, Ethereum can handle just 15. Because of its fast speeds, many popular memecoin projects choose to build on Solana rather than Ethereum. 

Why does Ethereum have Layer-2s?: Ethereum was one of the first smart contract blockchains, which means that compared to its competitors, it has an outdated architecture. As a result, many Ethereum projects rely on Layer-2 solutions that offer faster speeds. This includes Base, Optimism, and Arbitrum. 

Why are Layer-2s bad for ETH?: Some critics claim that value is no longer accruing to the Ethereum network, but instead to Layer-2 solutions. 

Quinn Thompson, Chief Investment Officer of Lekker Capital, called Ethereum ‘completely dead’ as an investment — citing declining transaction volume, user growth, and fees and revenues. He cited excessive Layer-2 solutions as a reason why ETH was stagnating. 

The bull case for Ethereum 

It’s important to remember that despite its price stagnation, Ethereum is still the world’s second-most valuable cryptocurrency. 

While ETH has historically been a successful investment, Ethereum has been declared dead more than 100 times in its history. Because the crypto market is highly volatile, critics often prematurely rush to declare ETH and other cryptocurrencies ‘dead’ as soon as a downturn starts. However, Ethereum has proven to be resilient. 

Ethereum still has an active development community, hosting some of the biggest decentralized applications in the world. Applications like Uniswap — the world’s largest decentralized exchange — and Blur — one of the world’s largest NFT marketplaces — are built on Ethereum. 

Why is Ethereum better than competitors?: In recent years, Ethereum has lost ground to competitors like Solana. However, Ethereum still offers a higher level of decentralization. While Solana has seen several network outages in the past, Ethereum has maintained security and stability. 

‍Can Ethereum continue to be valuable with Layer-2?: Layer-2 networks still rely on Ethereum for its underlying security. Because of this, many Ethereum advocates believe that the network will continue to be successful in the long-term.

What is Ethereum?

Unlike BTC, ETH wasn’t designed to act as a cryptocurrency — it was designed to enable smart contracts and decentralized applications! 

Ethereum allows developers to build new applications on the blockchain — like DeFi protocols and NFTs. 

Ether (ETH) — Ethereum’s native cryptocurrency — is used to pay for fees and make transactions on the blockchain. Many investors hold ETH because they believe in the long-term potential of the Ethereum ecosystem. 

Today, the Ethereum network is home to some of the biggest decentralized applications in the world. At the time of writing, it’s estimated that the Ethereum DeFi ecosystem holds more than $55 billion in TVL (total value locked).

Is cryptocurrency dead?

Despite market fluctuations, the cryptocurrency sector is far from dead. 

While 2022 saw a collapse in cryptocurrency prices, the market saw a resurgence in 2023 and 2024. After Donald Trump won the 2024 US presidential election, the price of all cryptocurrencies — including ETH — saw a surge. In December 2024, the price of Ethereum hit $4,000 for the first time since 2021. 

Data showed more new wallet addresses and higher transaction volume on Ethereum after the presidential election.

However, ETH’s price fell in later months due to investor concerns about Layer-2 Solutions and competing blockchains.

5 key Ethereum metrics

Lets walk through 5 key metrics that show how Ethereum is performing in 2025.

• Market Capitalization: Ethereum remains the second-largest cryptocurrency by market cap, a testament to its relevance for users and investors. 
• Active Developers: Ethereum boasts the largest community of active developers in the crypto space, reflecting its vibrant ecosystem.
• Decentralized Finance (DeFi): Ethereum is the leading platform for DeFi projects, holding the majority of TVL.
• Network Upgrades: In recent years, Ethereum transitioned from Proof of Work to Proof of Stake — leading to a major increase in scalability. 
• NFT Sales: Ethereum dominates the NFT market, hosting the majority of transactions and the most significant sales. In January 2025, the Ethereum NFT market saw more than $300 million of transaction volume.

The current state of Ethereum

In 2024, Ethereum implemented the Dencun upgrade. This enhanced Ethereum's scalability and efficiency — reducing transaction costs for Layer 2 networks built on Ethereum. The same year, Ethereum ETFs became available in the US for the first time. This made it easier for investors to hold crypto-assets in their crypto IRAs. 

In 2025, Ethereum implemented the Pectra upgrade, which enhances user experience and reduces gas fees. In addition, President Trump announced that Ethereum would be held by the US government in the crypto strategic reserve.

Ethereum’s Advantages

Let’s walk through some of the advantages that Ethereum offers to users. 

• Smart Contracts and dApps: Ethereum is the biggest smart contract blockchain — which means its the #1 choice for NFTs and DeFi protocols. 
• Community and Developer Support: Ethereum has an active developer community. Thousands of developers contribute to improving the blockchain! 
• Decentralization: Ethereum maintains a high degree of decentralization. This ensures that the blockchain is secure and owned by the community rather than an individual or an organization. 

Ethereum’s Challenges

Let’s walk through some of the challenges that Ethereum may face going forward. 

• Scalability: Other smart contract blockchains offer faster transaction speeds than Ethereum.
• Competition: Emerging blockchains like Solana and Cardano also offer smart contracts, challenging Ethereum's dominance.
• Old blockchain: Because Ethereum was the world’s first smart contract blockchain, many critics claim that its infrastructure is old and outdated compared to competitors.

In recent years, blockchains like Solana have seen rapid growth — with many memecoins and DeFi protocols choosing to launch on Solana because of its fast speeds.

Will ‘Ethereum killers’ beat Ethereum? 

For years, many commentators have said that other blockchains — known as ‘Ethereum killers’ — would eventually overtake Ethereum by offering lower fees and faster transaction speeds. 

However, Ethereum continues to be the #1 blockchain for smart contracts, even though cheaper and more scalable blockchains have been available for years. While Solana has provided serious competition, Ethereum still has a larger DeFi ecosystem. 

It’s likely that Ethereum benefits from the first-mover advantage. In other words, because Ethereum was the first smart contract blockchain available, it was first to grow a large user base and developer community. 

Can Ethereum co-exist with competitors?

Some believe that Ethereum will co-exist with so-called ‘Ethereum killers’ in the years to come.

Chris Dixon, a general partner in the venture capitalist firm Andreessen Horowitz, has said that he believes in a multi-blockchain future where different smart contract blockchains serve different purposes. 

For example, there may be specialized blockchains designed for cryptocurrency games — which often require higher transaction speeds.

Has anyone ever hacked Ethereum? 

The Ethereum network itself has never been hacked. Because of the way the blockchain’s consensus mechanism works, hacking the Ethereum network would require someone to own 50% or more of the supply of the cryptocurrency. 

However, applications built on Ethereum have been compromised. In 2016, The DAO — a decentralized venture firm built on Ethereum — was hacked for $60 million. Ethereum’s user base then voted for a hard fork that rolled back the history of the blockchain before the hack.

The DAO incident helps to highlight the resilience of the Ethereum network. Even in a case where the future of the blockchain was threatened, the Ethereum community was able to come together and find a solution.  

Is Ethereum better than Bitcoin? 

It’s important to remember that Ethereum and Bitcoin were designed for different purposes. Which cryptocurrency is a better investment may vary depending on your risk profile and investment goals. 

Bitcoin: Store of value: Bitcoin is primarily a store of value and a hedge against fiat currency inflation. Bitcoin was not built for smart contracts and does not have a well-developed NFT and DeFi ecosystem. 

Ethereum: A bet on the ecosystem: Ethereum’s value comes from the value of the ecosystem. As the DeFi and NFT ecosystem grows, it’s likely to assume that demand for ETH will grow.

The choice between Ethereum and Bitcoin depends on the investor's goals: store of value versus utility and innovation.

Is Ethereum still a good investment?

It’s likely that if the market for decentralized applications built on Ethereum smart contracts continues to grow, the value of ETH will rise.

While it’s difficult to tell whether Ethereum will continue to be successful in a decade, the blockchain has survived multiple crashes in the crypto market. Today, Ethereum hosts thousands of applications — such as DeFi protocols, NFTs, cryptocurrency games, and even Decentralized Autonomous Organizations (DAOs). 

What’s the argument against ETH?: As noted earlier, some critics believe that Ethereum will be surpassed by blockchains that offer faster speeds like Solana and Cardano. 

Will Ethereum rise in 2025? 

It’s difficult to make a price prediction for any cryptocurrency. However, the cryptocurrency market has seen strong growth in response to President Trump’s crypto-friendly actions. 

Trump has appointed Paul Atkins as head of the SEC. Atkins has been seen as a crypto-friendly regulator — which will likely benefit ETH and other cryptocurrencies. In addition, Trump announced that Ethereum would be purchased as part of the United States’s strategic crypto reserve. 

In addition, Ethereum’s strong user base and developer community, continued upgrades, and central role in the DeFi and NFT spaces are all positive signs for investors. 

However, it’s likely that Ethereum will continue to see increased competition from Solana and other competing blockchains.

In conclusion 

While Ethereum faces challenges and competition, the blockchain is thriving. Its active developer community and central role in the crypto ecosystem help make the network resilient. As the crypto market evolves, Ethereum is likely to remain at the forefront — helping to push forward the possibilities of decentralized technology.