Is Its Dominance at Risk?

Once the leader in smart contracts and decentralized applications, Ethereum is now facing serious challenges from both within its ecosystem and from outside rivals. The altcoin giant, which has held the top position for a long time, is starting to feel the pressure as competitors like XRP and Solana continue to rise.

With Ethereum’s price stuck between $3,200 and $3,500 for weeks, many are wondering if its dominance in the altcoin market is at risk.

Ethereum Struggles to Break Through

Ethereum’s (ETH) price has been stuck in a consolidation phase, failing to break past the key $4,000 mark. In the last two months, ETH has dropped by nearly 20%, which has raised concerns about its future price potential.

Additionally, the ETH/BTC ratio—a measure comparing Ethereum’s value to Bitcoin—has fallen by 19% since early December, signaling a weakening position for Ethereum in the market.

Ethereum’s challenges aren’t just about price. While Bitcoin ETFs have seen inflows for ten consecutive days, Ethereum ETFs have experienced outflows, with $15.9 million leaving the market. This is a sign that investors may be losing confidence in Ethereum.

Internal Struggles at the Ethereum Foundation

The Ethereum Foundation (EF), which has played a key role in Ethereum’s development, is also facing internal challenges. High-profile developers like Eric Conner and Danny Ryan have left, citing frustrations and personal issues. Their departures raise concerns about leadership stability and the future direction of the Foundation.

Even Vitalik Buterin, Ethereum’s founder, has admitted that there is a pressing need to improve scalability, security, and the overall user experience if Ethereum wants to stay competitive.

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Rising Competition from Solana and XRP

On top of these internal struggles, Ethereum is facing strong competition from external rivals. Solana, known for its high scalability, is growing quickly. Solana can handle 60-65 million daily transactions, far more than Ethereum’s 1-1.3 million.

Moreover, Solana has consistently outperformed Ethereum in terms of daily transaction fees, despite Ethereum charging higher fees per transaction.

XRP has also made impressive gains, surging 350% against Ethereum since November 2024. While there have been delays in XRP’s ETF approval, experts like Goldman Sachs employee Dom Kwok believe XRP could soon surpass Ethereum and become the second-largest cryptocurrency.

In a market where innovation and speed are everything, Ethereum’s future may depend on how quickly it can adapt to the growing pressure from both inside and outside.

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