Is Ethereum Dying? What to Expect in 2025

There have been numerous rumors circling the internet that Ethereum has reached its peak and is now on its way out. But is this true? We’ve got an opinion on the topic, but we can’t guarantee it’s 100% correct.

Whether or not you invest in Ethereum, it’s important to know what to expect from this particular cryptocurrency asset, so keep reading to learn more about the future of Ethereum.

Why People Think Ethereum Is Dying

Maybe you saw this article title, and it came as a shock to you, as you thought everything was going fine for Ethereum—and let’s be clear, nothing bad is happening to Ethereum... yet.

The main reason there is so much chatter about Ethereum is because of how static Ethereum has been. Although it’s been around for the longest of almost any other altcoin, it hasn’t seen much growth in the past years—something which is strange seeing as Bitcoin has seen lots of growth in the same time period.

If that weren’t enough, what really has critics scared is the fact that while Ethereum has remained stagnant, other tokens, like Solana, have expanded their customer base and grown significantly, leaving them to wonder if they should continue to wait for Ethereum to change, or jump ship for something else.

Don’t panic, however, as there are a lot of reasons for this stagnancy, which we will expand on below. And while stagnancy is never good, it may not spell the end of a blockchain either.

Bitcoin Narrative vs Ethereum Narrative

It’s important to recognize that while Ethereum and Bitcoin are often compared, they are not the same thing. Bitcoin was designed as a store of value, a “digital gold,” if you will, while Ethereum was designed to be a better, decentralized internet.

This means that although they are often named together, you really can’t compare these two cryptocurrencies. So, while, yes, Bitcoin has grown in the past years and Ethereum has not, this doesn’t necessarily mean something bad, because they are two completely different things.

Bitcoin Competition vs Ethereum Competition

That brings us to our next point. Ethereum has so much competition. The main competitor, Solana, has taken massive strides in the past few years, indicating that some of the individuals who may have considered using Ethereum instead chose Solana.

Additionally, Ethereum’s competition doesn’t end there. Solana is the major competitor, but Sui and Avalanche are also vying for the space, meaning Ethereum might need to step it up or otherwise face stagnancy.

Bitcoin, on the other hand, has very few viable competitors. However, Litecoin and Monero are technically in the same space…they just aren’t the same. Bitcoin has become synonymous with cryptocurrency and benefits greatly from that.

Bitcoin Fees vs Ethereum Fees

Next up, we have to mention the fees. Fees may be a major reason that Ethereum has been stagnant. Although both Bitcoin and Ethereum are known for their high fees, it’s important to note that users of Ethereum often need to pay fees more frequently than on Bitcoin.

Because Bitcoin is a store of value, there are few using the platform outside of trading. Ethereum, on the other hand, is a platform that is supposed to be used to build dApps, meaning you will pay fees frequently.

Ethereum has been plagued with high gas fees for years, something we believe has driven developers to the competition, slowing growth.

The Effects of EIP-1559

Ethereum underwent an upgrade several years ago. This upgrade was supposed to make Ethereum more deflationary and gas fees more stable, and it was called EIP-1559.

Unfortunately, while this upgrade did have the desired effect to make Ethereum more deflationary, it also disincentivized Ethereum miners, causing numerous to leave the platform. We aren’t saying EIP-1559 is wholly bad, as it did achieve the desired stability, but it also failed to make Ethereum more attractive to users as a whole.

Is Ethereum Doomed? No.

So, is Ethereum on its way out? In our opinion, no.

Despite how bad this article may sound, Ethereum has lots of good things going for it. First and foremost, they are still the number one platform for making and hosting stablecoins and with 50 million active clients, we don’t expect Ethereum to go anywhere soon.

If that weren’t enough, Ethereum still has the most developers of any cryptocurrency platform. So even though it hasn’t experienced growth recently, we do believe that it will hold steady at its current value and use.

The cherry on top is that Ethereum also has a first mover advantage—meaning they were in the space before anyone else. This matters because the United States currently has a pro-cryptocurrency government, and we expect this to be the case for several years. So, if any digital cryptocurrency is going to be used institutionally, other than Bitcoin, we expect it to be Ethereum.

We also love that Vitalik Buterin, the Ethereum creator, is still heavily involved in the project. Because if institutional adoption is possible but the platform needs a few changes, Vitalik can probably make it happen.

But will it be enough to take Ethereum to the moon? Maybe, or maybe not.

Should You Buy Ethereum?

Although we think Ethereum is stable and will continue to be in the coming year, we aren’t sure there is growth in Ethereum’s future. After all, Ethereum has already gotten its own ETF, and it hasn’t shot to the moon.

We still think Ethereum could be a good investment, but we mostly advise those who use it to buy Ethereum. If you are looking for just an investment, we doubt holding Ethereum will be worth it. Rather, we suggest considering Bitcoin, which we think is more likely to increase in the coming year.

That being said, Ethereum certainly isn’t a bad investment, and if you stake your tokens, it can be worthwhile. Just ensure you research any investment before you make it to ensure that Ethereum is the right choice for you and your portfolio.