Ethereum, the only altcoin with an exchange-traded fund (ETF), is facing significant challenges in the financial market.
Decline in Demand for Ethereum ETFs
Data from SoSoValue shows a decline in demand for Ethereum ETFs over the past weeks. Investors are shedding the asset, which was worth $120 million and was dumped last week. The Ethereum ETF market lost $335 million the previous week, bringing its cumulative losses to $455 million. Despite this, the net inflow to Ethereum ETFs stood at $2.7 billion, which is $34 billion less than Bitcoin, which attracted $37 billion.
Price Struggles and Fee Competition
In addition to price action, Ethereum faces issues with fees. In 2025, its fees stood at $202 million, lower than networks like Uniswap, Jito, Tron, and Solana. Both Solana and BNB, as Layer-1 blockchains, are emerging as strong competitors to Ethereum. Similarly, Layer-2 networks like Arbitrum and Base are also proving to be competitive alternatives.
Will Ethereum Regain Its Momentum?
As of writing, Ethereum is trading at $2,113.03, a 3.43% decline over the last 24 hours. Its trading volume has dropped by 42.20% to $9.74 billion, signaling declining investor interest. A week ago, Ethereum's price rose past $2,500 but has since been on a downward spiral. Despite bullish news of its inclusion in the U.S. Strategic Crypto Reserve, it has not found support at the $2,200 level.
Ethereum continues to face challenges amid declining ETF demand and increasing competition. Whether it can regain its position remains to be seen.
