Ethereum, long considered Bitcoin's top competitor, is facing serious challenges, evidenced by declining market capitalization and developer activity.
Tough Times for Ethereum
According to a Bloomberg report, Ethereum is experiencing its most difficult phase, with market cap dropping from $480 billion in December to $218.62 billion by the end of March. The ETH price fell from $4,034 last December to $1,800 this month, marking a 55% decline. Other indicators like market share also deteriorated from 17% to 8.3%.
Rising Competition
While Ethereum struggles, its rivals are gaining momentum. Developer activity on Ethereum projects dropped by 17% in 2024, whereas Solana attracted 83% more developers year-over-year. Ripple's XRP has outperformed Ethereum, with its market cap soaring from $30 billion to $189 billion last year.
Leadership Challenges
Experts link Ethereum's problems to leadership issues. Crypto analyst Ryan Watkins argues that lack of growth and innovation is stalling progress. Ethereum co-founder Vitalik Buterin is criticized for his reluctance to adapt to changing market demands, leaving the project isolated in a more regulated industry.
Despite the current challenges, Ethereum is preparing for a major upgrade—Pectra, which could offer significant improvements and help the platform regain its lost market position.
