Experts suggest that 2025 may become pivotal for Ethereum despite its recent market share decline. What are the main reasons for the changes, and what could happen next?
Causes of Ethereum's Market Share Decline
Ethereum faced a notable decline in market share during Bitcoin's bullish trend in 2024. Bitcoin's market dominance surged from 50% to 61%, while Ethereum's share plummeted from 18% to 12%. This decline intensified following the introduction of spot Ethereum ETFs.
Expected Changes in 2025
Matrixport anticipates that 2025 could be a turning point for Ethereum as heightened interest in spot Ethereum ETFs attracts substantial investments from traditional financial institutions, creating upward momentum in ETH prices. Analysis highlights a linear decrease in Ethereum's market dominance and growing interest in platforms like Solana.
Impact of Traditional Finance on Ethereum
Despite the mixed outlook for Ethereum, increased interest from traditional finance could provide a fundamental edge. Future developments in the crypto landscape will be crucial in determining if Ethereum can reclaim its pivotal role in the market, potentially benefiting the broader altcoin space.
While the outlook for Ethereum remains uncertain, potential growth in interest from traditional financial players may prove key to its recovery. Observing whether analysts' forecasts will come true and what the market will become by 2025 remains to be seen.
