Ethereum is closing out March with one of its most disappointing first-quarter performances in recent years.
According to CoinGlass data, Ethereum has dropped by nearly 50% over the past three months, showing a significant downturn despite a generally more optimistic market climate. This underperformance is especially concerning given the bullish trends seen in other sectors, leading some to question whether there are deeper issues within Ethereum’s ecosystem.
Bloomberg recently weighed in on Ethereum’s struggles, noting that the blockchain, which launched in 2015 with ambitions of challenging Bitcoin for dominance, has faced increasing difficulties in living up to those early expectations.
The global crypto market has seen signs of improvement, especially following the pro-crypto stance taken by U.S. President Donald Trump, but Bloomberg suggests this political shift isn’t enough to address the persistent challenges Ethereum faces.
A key issue highlighted by Bloomberg is the ongoing loss of developers from the Ethereum platform. Electric Capital’s data reveals that the number of active Ethereum developers dropped significantly in 2024, while competing networks like Solana saw substantial growth. This decline in developer activity is concerning for Ethereum’s long-term prospects.
Additionally, concerns about the Ethereum Foundation’s management have been raised. Specifically, the push to move transactions to layer-2 networks in an effort to lower costs has unintentionally diverted activity away from Ethereum’s core network.
This shift, while beneficial for transaction efficiency, has led to reduced fees and activity on Ethereum itself, contributing to bearish sentiment around the token’s future performance.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/ethereum-faces-setbacks-as-developer-exodus-and-strategic-shifts-weigh-on-its-future/