Ethereum Struggles as Rivals Gain Ground in 2025

Key Takeaways
- Ethereum (ETH) lost over 44% of its value in 2025.
- ETH’s market dominance dropped from 17% to 7.9%.
- Other cryptocurrencies like Solana (SOL) and Ripple (XRP) are gaining market share.
- Analysts criticize Ethereum for lack of leadership and strategic direction.
- Technical indicators point to a continued downtrend.
Ethereum Losing Ground
Ethereum was long considered the strongest alternative to Bitcoin. But 2025 paints a different picture: ETH has lost around 44% of its value since the beginning of the year — from $3,600 in January to $1,800 currently. In contrast, Bitcoin (BTC) gained 30% over the same period.
The year-over-year comparison is also bleak: ETH lost 47% of its market value, while Ripple (XRP) surged by 249% and Solana (SOL) experienced strong growth. Ethereum’s market capitalization currently stands at approximately USD 221 billion — still making ETH the second-largest cryptocurrency, but its relevance is steadily declining.
Decline in Developers and Innovation
Another warning sign is the drop in active developers. According to recent data, the number of developers working on Ethereum-based projects fell by 17% in 2024. In contrast, Solana saw an 83% increase in active developers — a clear indication of growing appeal.
Solana has established itself as a platform for so-called memecoins, attracting new projects and developers. Ethereum, on the other hand, seems to be stagnating in its development.
Leadership Issues Holding Ethereum Back
A central point of criticism is the project’s leadership. Industry analysts like Ryan Watkins attribute Ethereum’s weakness to a lack of strategic growth and insufficient political engagement. Ethereum founder Vitalik Buterin continues to adhere to the vision of a fully decentralized blockchain and rejects political alliances.
While other projects actively collaborate with governments and policymakers, Ethereum remains on the sidelines. This stance could become a disadvantage in the long run, as regulatory support is becoming increasingly important.
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Technical Analysis: More Losses Possible
A look at technical indicators shows that downward momentum continues. The Stochastic RSI (Relative Strength Index) currently sits at 14.6 — a clear sign of oversold conditions and a potential further downtrend.
The current price of $1,839 reflects a 2.11% drop in a single day and 8.39% over the past week. If this trend continues, the price could fall to $1,761. A sustainable rise above the $2,000 mark would be needed to signal a potential trend reversal.
Our Assessment
Ethereum is currently under significant pressure — both technically and structurally. The decline in developers, weak price performance, and leadership criticism suggest that ETH is at a turning point. The competition is not standing still: Solana and XRP are gaining market share and investor confidence.
For investors, this means caution is warranted. Those already invested should closely monitor price movements and fundamental factors. New investors may want to wait and see whether ETH stabilizes or continues to decline.
In the long term, Ethereum remains an important part of the crypto market. But without clear leadership and strategic realignment, its position as the number two could be at risk.
Sources
- Bloomberg
- Messari
- Tradingview
Symbol | ETH |
Coin type | Alt Coin |
Transaction Speed | Medium |
Pros |
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Cons |
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Further practical applications | |
Price | $1,905.48 |
24h % | 3.83 % |
7d % | -7.80 % |
30d % | -23.00 % |
60d % | -42.27 % |
1y % | -44.71 % |
Market Cap | $229,726,815,075.00 |
Official Links | Website | Source Code |
Socials | Reddit | X |