In an AMA session on April 23, 2025, Charles Hoskinson, founder of Cardano, expressed concerns about Ethereum’s long-term viability, predicting that the network could face a significant user migration within the next 10 to 15 years.
Hoskinson argued that Ethereum’s current architecture, scaling difficulties, and internal inefficiencies would likely lead to a decline in its user base as alternative platforms become more appealing.
He noted that ETH‘s reliance on Layer-2 (L2) solutions to address its scaling issues could contribute to the problem. While L2 solutions help alleviate some of Ethereum’s congestion, they could eventually become parasitic, draining resources from the network without providing enough long-term value. This could ultimately lead to user frustration and migration to other blockchain ecosystems.
Ethereum’s Architectural Shortcomings
Hoskinson highlighted Ethereum’s governance model and network structure as creating long-term vulnerabilities. He pointed out that more and more users are shifting to alternative platforms, particularly those that utilize Layer-2 solutions, which are gaining dominance in the ecosystem. Ethereum’s heavy dependence on these solutions may exacerbate its scaling challenges and create tensions within the network, making it more difficult for the platform to maintain stability and user retention.
Fundamental Flaws in Ethereum’s Design
Further, Hoskinson criticized several foundational aspects of Ethereum’s design, including its proof-of-stake (PoS) consensus mechanism, accounting model, and virtual machine. According to him, these issues were avoidable and stemmed from decisions made by the Ethereum Foundation, despite pushback from industry experts. Hoskinson emphasized that these missteps were largely self-inflicted, as the Ethereum team ignored advice against these design choices and proceeded with their implementation.
Despite Ethereum’s pioneering role in the blockchain space, Hoskinson’s comments shed light on persistent concerns about its ability to scale and maintain its position as a leader in the decentralized ecosystem. As other blockchain projects continue to innovate and address the issues Ethereum is facing, it remains uncertain how the network will adapt to the growing competition.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/founder-of-cardano-predicts-ethereums-decline-due-to-structural-issues/