Ethereum isn’t in crisis, but it’s drifting. Once the go-to platform for decentralized innovation, it now finds itself lagging behind newer, faster competitors.
Bitcoin has surged past 60% dominance, and ETH is still far from reclaiming its former highs. Meanwhile, Ethereum’s share of the overall market has quietly sunk to its lowest in half a decade.
According to David Hoffman of Bankless, Ethereum’s current challenges are rooted not in technology—but in structure and culture. Years of prioritizing long-term research and Layer-2 scaling left its core Layer-1 neglected. Rollups may have eased congestion, but they’ve also fragmented the ecosystem and diluted mainnet activity.
Interviews with Ethereum Foundation insiders reveal a need to shift focus back to the base layer. Upgrades like Glamsterdam aim to drastically increase gas limits, while zk-based systems are being explored to supercharge throughput. The goal: scale Ethereum 100x without sacrificing decentralization.
But technical changes alone won’t solve Ethereum’s identity problem. Its slow decision-making and lack of clear leadership have fueled internal stagnation. Critics point to a research-driven environment that often overlooks usability and speed—two areas where newer chains are winning.
To fix this, Ethereum is adjusting course. A more product-focused mindset is emerging, with new leadership at the Foundation and shorter development roadmaps. Interoperability between Layer-1 and Layer-2 is being streamlined, and initiatives like the Pectra upgrade aim to improve user experience, cut costs, and re-energize the ecosystem.
Ethereum still holds massive potential—but only if it can evolve with the times. The next year may determine whether it regains its footing or continues to lose ground in a rapidly shifting landscape.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/ethereums-make-or-break-moment-can-it-regain-its-edge/