Market
What Experts Say Needs to Change

Ethereum’s performance has been inconsistent lately, negatively impacting its public perception. Continuous price drops, governance issues, and high gas fees have made the crypto community question whether these are temporary setbacks or signs of deeper problems.
BeInCrypto interviewed industry leaders from Wirex, Komodo Platform, BingX, KelpDAO, and RAAC to analyze the factors contributing to Ethereum’s decline, its current market position, and potential strategies for improvement.
Market Performance and Investor Sentiment
Ethereum’s 2025 is off to a rocky start. After a failed attempt to break through the $2,500 barrier, Ethereum has retreated to $2,090. Meanwhile, whale addresses have been on a selling spree, dumping a massive 640,000 ETH worth $1.5 billion and pushing the altcoin king further from its target.
The recent Bybit hack, which caused the theft of approximately $1.4 billion worth of Ethereum, didn’t help, either. Since then, the network recorded its highest weekly outflows, at $300 million.
Meanwhile, a wave of bearish sentiment and dwindling investor confidence sent ETH spot ETF outflows to a 30-day peak of $94.27 million last week. This surge, the third largest of 2025, followed Ethereum’s price dip to $2,251, signaling a clear investor retreat.
“Compared to Bitcoin, which has surged over 90% this year, Ethereum’s performance feels underwhelming, leading many holders to wonder when it will reclaim a new all-time high,” Vivien Lin, Chief Product Officer at BingX, told BeInCrypto.
Given these circumstances, several factors must be considered to understand Ethereum’s recent decline.
External and Internal Factors Affecting Ethereum
Recent price swings in the crypto sector have prompted speculation about the onset of a bear market. Though the market has experienced a reprieve following President Donald Trump’s announcement of a US Crypto Strategic Reserve, the long-term impact of this recovery remains uncertain.
Other factors have also contributed to the declines in prices across major cryptocurrencies. Trump’s recent tariffs on Canada, Mexico, and China have caused prices to plunge.
Meanwhile, crypto markets are beginning to feel the impact of inflation on the United States’ economy. In turn, traders are increasingly weary that the Federal Reserve will raise interest rates. All of these factors have affected Ethereum’s performance.
“The broader market remains highly sensitive to macroeconomic factors like tariffs, potential interest rate cuts, and geopolitical tensions, all of which have added to ETH’s price uncertainty,” Lin added.
While these factors provide insight into current market fluctuations, they do not fully explain the price performance of individual cryptocurrencies. Karlos Bujas, Graduate Trading Analyst at Wirex, gave a general overview of the struggles Ethereum currently faces:
“Ethereum’s price struggles can be attributed to internal challenges like governance issues, inefficient resource allocation, and waning market dominance. Critics point to the Ethereum Foundation’s large budget and underutilized treasury, which some argue have slowed innovation. Developer dissatisfaction has also played a role, while Ethereum’s lack of political engagement, especially compared to Solana and XRP, has left it at a disadvantage. Leadership divisions have added to the uncertainty, and with Ethereum losing ground in DeFi and maintaining high fees, its price has remained stagnant below $3,500 since January 7, 2025,” he told BeInCrypto.
Exploring each of these internal challenges in greater detail is crucial to truly understanding the root causes of Ethereum’s stagnation.
Ethereum’s DeFi Dominance and Challenges
Ethereum’s success largely hinges on its pioneering leadership in decentralized finance (DeFi), infrastructure, and developer ecosystem. Compared to its competitors, Ethereum is also perceived to be more decentralized.
The network continues to dominate the market in terms of DeFi, with a current total value locked (TVL) surpassing $48 billion. Solana, its runner-up, lags behind with a TVL of over $7 billion.
“58% of DeFi liquidity is on Ethereum and it dominates the market across stablecoin market share, liquid staking, restaking and several other sectors of DeFi. Overall, Ethereum has been the best chain for innovation in DeFi and most successful DeFi protocols are on Ethereum and L2s,” Amitej Gajjala, Co-founder of KelpDAO, told BeInCrypto.
Despite Ethereum’s dominance in DeFi, high gas fees and slow transaction speeds have deterred users from continued interaction with the network.
“Ethereum has been losing ground in DeFi, particularly to Solana, due to its high transaction fees and governance challenges. On-chain activity has dropped by 38%, and key protocols like Uniswap have seen significant declines. Meanwhile, Solana’s lower fees and faster transactions have attracted liquidity, further boosted by Trump’s memecoin launch in January 2025,” Bujas said.
Generally speaking, Ethereum has seen a decline in user activity. According to data from Glassnode, the number of active Ethereum addresses has been particularly volatile over the past few months.

Ethereum’s most recent peak was on January 25, when the network registered 711,578 active addresses. On March 2, that number dropped to 413,754, representing a 53% decrease.
Scalability Issues and Layer-2 Solutions
Limited transaction capacity within Ethereum’s network architecture creates scalability issues, leading to congestion and high transaction fees. When user demand increases, transaction times slow, and fees rise for those interacting with dApps.
Over the years, Ethereum has introduced several reforms to try to curb the extent of these issues.
“Despite changes to Ethereum’s architecture, including a transition from proof-of-work to proof-of-stake, scaling issues remain, which has led to a crisis of confidence in Ethereum amongst crypto investors,” Kadan Stadelmann, Chief Technology Officer at Komodo Platform, told BeInCrypto.
When these changes proved insufficient, Ethereum also introduced a Layer-2 ecosystem. These protocols offer near-term scalability improvements by handling transaction processing outside the main Ethereum network. However, this solution has been met with criticism.
“The failure to make Ethereum scalable for the myriad dApps and DeFi applications being built upon the network has caused a proliferation of layer two technologies, which have their own tokens, which saps demand from the Ethereum mainnet. For instance, while Polygon is a layer two network, its token has outperformed ETH, making it in effect competition for Ethereum, at the same time it increases Ethereum’s scalability. What’s more, layer two protocols such as Polygon—as well as Optimism and Arbitrum—introduce centralization to a network built on the promise of decentralization,” Stadelmann added.
Over time, these issues have led to increased competition from other networks.
Competition and the Ethereum Foundation’s Response
Ethereum has explored other DeFi remedies to maintain its position, particularly as networks like Solana have started to challenge its DeFi dominance.
“Ethereum is losing ground to competitors—primarily Solana. Solana was built with scalability in mind, allowing massive DeFi projects to be launched on top of the network. Its success in the DeFi sector over Ethereum is evidenced by the fact that President Donald J. Trump launched his digital collectibles on Solana, not Ethereum,” Stadelmann said.
A few days after Trump launched his meme coin on Solana, the Ethereum Foundation transferred 50,000 ETH to a multi-signature wallet to support DeFi protocols.
This action was taken following public scrutiny of the Foundation’s treasury management. Supplying ETH into these protocols generates yield on DeFi deposits, effectively appreciating the treasury’s value without needing to sell assets.
Some members of the community lauded the move.
“This effort by the ETH Foundation to positively influence its reputation in the space and increase the price of Ethereum is an essential step in the right direction. Due to the sheer increase in DeFi competition, everyone is trying to make a product better than the last, so doing this was a good move. I believe this was a successful move as just a few hours after the deployment, Ethereum’s Relative Strength Index (RSI) went from 65 to 72, adding increased purchasing pressure,” Lin told BeInCrypto.
Gajjala agreed, adding:
“It is definitely a very positive move from the Foundation. It signifies trust in the DeFi protocols and also signals trust and credibility among DeFi protocols to the broader market including institutions,” he said.
However, others criticized the Ethereum Foundation for how long it took to make the move.
“It is great this happened but was long overdue. The whole value driver of ETH is DeFi and its financial applications. For whatever reason, this went over the ETH Foundation’s head and they’ve been dumping tokens for covering foundation expenses when the optimal solution would be taking a loan on a protocol like AAVE. To me, the idea of this move was to show support for the ‘niche’ that drives most of ETH’s value. After it had largely overlooked DeFi,it is nice to be acknowledged by the Ethereum Foundation. Although successful, the lateness of this move has, however, left a bad taste in some builders’ mouths,” Kevin Rusher, Founder of real-world asset platform RAAC, told BeInCrypto.
To that point, Bujas contended:
“While the move may have provided temporary liquidity support, it doesn’t fully address deeper concerns like high fees, competition, and governance issues. Its long-term impact will depend on whether it can drive sustained engagement in DeFi. However, without fundamental improvements, this capital injection alone is unlikely to reverse Ethereum’s downward trajectory,” he said.
The episode also illustrated the disagreement over the Ethereum Foundation’s management of the network’s future.
Leadership Changes and Community Reactions
Over the past year, the Ethereum Foundation has faced increased scrutiny over its passivity and concerns among community members about its spending and operational priorities. So, its current efforts aim to strengthen the Foundation’s ties within the Ethereum ecosystem and rebuild trust.
The Ethereum Foundation’s transfer of 35,000 ETH to Kraken, revealed by Lookonchain, sparked community criticism due to a lack of transparency. While the Foundation cited budget needs and regulatory constraints, the community remained divided on how to handle financial decisions.
Several other issues also divided the community over the Foundation’s influence in Ethereum’s ecosystem. Criticisms include the Foundation’s leadership being held accountable for Ether’s relative underperformance compared to other cryptocurrencies. Furthermore, the Ethereum network has experienced a reduction in new developer acquisition, with Solana exceeding Ethereum’s developer growth.
Some within the Ethereum community called for the resignation of then-Executive Director Aya Miyaguchi as they held her responsible for Ethereum’s challenges.
“There has been criticism that Miyaguchi is not handling the challenges with general operations well, leading to some of the team leaving. There have also been efforts to create a more even leadership structure with dual leaders, taking more control away from just one individual. On the contrary, some are happy with her leadership and the Foundation’s roadmap. It is truly difficult to make all players in an ecosystem happy, so there have been leadership shifts and discussions to address these issues for long-term success,” Lin explained.
Though Ethereum Co-founder Vitalik Buterin announced on January 18 that the Ethereum Foundation was undergoing a significant leadership transformation, these changes were only announced last week.
After seven years as Executive Director, Miyaguchi became President on February 25. Shortly after, the Ethereum Foundation formed the Silviculture Society, a 15-member council, to address leadership concerns and uphold core values.
Yesterday, the Foundation appointed Hsiao-Wei Wang and Tomasz Stanczak as co-Executive Directors. Although community opinions on the new leadership remain split, Gajjala stressed that these changes need time to produce effects.
“Change management would take time and I would urge the community to stay patient as some of these take time to implement,” he said.
In anticipation of this new chapter in Ethereum’s leadership, industry experts emphasized priority areas for improvement.
Experts’ Recommendations for Ethereum’s Future
Stadelmann and Bujas agreed that Ethereum needs to improve its scalability to maintain its competitive edge over other networks that provide relief in this area.
“The perceived obstacles to scalability on the Ethereum network have led to a decline in Ethereum’s dominance in the crypto markets. Whereas discussions in the past revolved around a flippening between Ethereum and Bitcoin, whereby Ethereum would overtake Bitcoin’s market share, discussions today revolve around a flippening of Ethereum by Solana. Largely driven by memecoins, Solana has surged against Ethereum in terms of market share in recent years. Solana’s average daily transaction volume has grown far beyond Ethereum’s— a shocking indictment of Ethereum’s growth or lack thereof,” Stadelmann said.
If Ethereum doesn’t resolve these issues now, it will face a snowball effect in the future.
“While Ethereum is likely to benefit from the general growth of the crypto market, its struggles with fees, governance, and innovation may limit its future upside. The ETH/BTC price has been bearish since 2022, with Ethereum lagging behind Bitcoin, signaling challenges in its growth potential. As Ethereum’s competitors improve their networks and capitalize on political opportunities, Ethereum must evolve to maintain its position,” Bujas said.
Meanwhile, other leaders remain bullish, declaring that Ethereum has the resources and resilience to maintain its status as the second-largest cryptocurrency decisively.
“We need look only at the explosion of stablecoins on ETH and World LibertyFi buying ETH en-masse to understand Ethereum’s vital role and undeniable value throughout the crypto ecosystem. For more examples we can look to Blackrock launching stablecoins and partnering with Elixir to utilize Curve Finance as infrastructure. Sure, competitors to Ethereum are going to eat into some of its market share- this is the sign of a healthy, non-monopolistic market– but look at where the bulk of liquidity and serious players lie– it is in ETH on Ethereum. Ethereum is a decentralized, credibly neutral network–something that cannot be said for many chains,” Rusher said.
The network’s sustained success will depend significantly on how the Ethereum Foundation manages its leadership during this period of intense competition in the cryptocurrency sector and whether it is sufficient to retain investor confidence.
Disclaimer
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
PENDLE Token Outperforms BTC and ETH with a 10% Rally

PENDLE has surged by 10% in the past 24 hours, making it the market’s top gainer during this period. The altcoin has even outperformed major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
With buying activity still underway, the PENDLE token is poised to extend its uptrend in the short term.
PENDLE Soars 43% After March Lows
PENDLE cratered to a seven-month low of $1.81 on March 11. As sellers got exhausted, the token’s buyers regained dominance and drove a rally. Trading at $3.24 at press time, PENDLE’s value has since climbed 43%.
The double-digit surge in the altcoin’s price has pushed it above the Leading Spans A and B of its Ichimoku Cloud indicator. They now form dynamic support levels below PENDLE’s price at $2.73 and $2.80, respectively.

The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades above the leading spans A and B of this indicator, its price is in a strong bullish trend. The area above the Cloud is considered a “bullish zone,” indicating that market sentiment is positive, with PENDLE buyers in control.
This pattern suggests that the token’s price could continue to rise, with the Cloud acting as a support level if prices pull back.
In addition, PENDLE currently trades above its Super Trend indicator, confirming the likelihood of extended gains.

The Super Trend indicator tracks the direction and strength of an asset’s price trend. It is displayed as a line on the price chart, changing color to signify the trend: green for an uptrend and red for a downtrend.
If an asset’s price is above this line, it signals bullish momentum in the market. In this scenario, this line represents a support level that will prevent the price from any significant dips. For PENDLE, this is formed at $2.34.
PENDLE Holds Above Key Trendline
Since its rally began on March 11, PENDLE has traded above an ascending trendline. This pattern forms when a series of higher lows connect, indicating that the price of an asset is consistently rising over time.
It represents a bullish trend, showing that PENDLE demand exceeds supply, with buyers pushing prices higher.
This trendline acts as a support level. With the token’s price bouncing off the trendline, it signals that the asset is in an uptrend and likely to continue. In this scenario, PENDLE could rally to $3.60.

However, if selloffs commence, the PENDLE token could lose some of its recent gains and fall to $3.06.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Will the SEC Approve Grayscale’s Solana ETF?

Grayscale has submitted a registration statement with the SEC to convert its Grayscale Solana Trust (GSOL) into an ETF listed on NYSE Arca.
Despite the filing, prediction markets remain unconvinced about the chances of approval.
Is a Solana ETF Approval Still Unlikely for Q2?
On Polymarket, odds for a Solana ETF approval in the second quarter of 2025 stand at just 23%. Broader expectations for any 2025 approval are at 83%, down from 92% earlier this year.
The decline reflects regulatory delays. In March, the SEC extended review timelines for several ETF applications tied to Solana, XRP, and other altcoins.

This pattern suggests the agency may be holding off on decisions until a permanent chair takes over. Mark Uyeda, currently serving as interim chair, has not signaled a shift in stance.
Paul Atkins, Trump’s nominee to lead the agency, appeared before the Senate last week. Lawmakers questioned his involvement in crypto-related businesses, adding further uncertainty around future approvals.
Grayscale’s latest filing excludes staking, which could speed up the review process. The SEC has previously objected to staking features in ETF proposals.
When spot Ethereum ETFs moved forward last year, Grayscale, Fidelity, and Ark Invest/21Shares all removed staking components to align with the SEC’s expectations at the time.
Under Gary Gensler’s leadership, the SEC expressed concern that proof-of-stake protocols could fall under securities law. Asset managers adjusted their applications accordingly to move forward.
Following approvals for spot Bitcoin and Ethereum ETFs, several firms aim to expand their offerings to include other cryptocurrencies. They plan to offer access through traditional brokerage accounts without requiring direct asset custody.
Solana remains a strong contender due to its growing futures market in the US and a more favorable regulatory environment. Analysts view it as one of the next likely approvals if the SEC opens the door to more altcoin ETFs.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
XRP Price Vulnerable To Falling Below $2 After 18% Decline

XRP has faced a significant correction in recent weeks, resulting in an 18% decline in the altcoin’s price. As a result, XRP is currently struggling to maintain upward momentum, with investors losing confidence.
This recent slump has raised concerns about the asset’s future, especially as certain XRP holders begin to sell their positions, increasing bearish pressure.
XRP Investors Are Pulling Back
The recent downturn in XRP’s price has triggered a sharp spike in the “Age Consumed” metric. This indicator tracks the movement of coins from long-term holders (LTHs) and has reached its highest level in over four months. The increase suggests that LTHs, who have been holding XRP for extended periods, are now losing patience.
This selling behavior may be driven by the lack of price recovery and the overall weak market conditions that have not improved. These holders appear to be attempting to limit their losses by liquidating their positions, which in turn increases the downward pressure on XRP’s price. This mass selling from LTHs further compounds the challenges for XRP, as their decision to sell is often seen as a sign of waning confidence in the cryptocurrency.

XRP’s market momentum appears to be weakening, as evidenced by the recent decline in the number of new addresses. The metric tracking new addresses has fallen to a five-month low, suggesting that XRP is struggling to attract new investors. This lack of fresh interest signals growing skepticism within the broader market, with potential investors hesitant to buy into an asset that has failed to deliver strong price action.
The drop in new addresses reflects a broader trend of reduced market traction and the lack of conviction from buyers. When combined with the selling pressure from LTHs, it creates a challenging environment for XRP to regain bullish momentum

XRP Price Needs A Boost
XRP’s price is currently holding at $2.06, just above the key support level of $2.02. If it manages to stabilize and break through the immediate resistance at $2.14, there could be a potential rebound, taking XRP higher.
However, with the continued weakness in market sentiment and the aforementioned bearish cues, XRP remains vulnerable to further declines. If the support of $2.02 fails, the price could drop further to $1.94, extending the 18% decline noted in the last two weeks.

If XRP manages to reclaim the $2.14 level and holds above it, the price could make its way toward $2.27. Breaching this level would invalidate the bearish outlook, signaling a potential recovery and restoring investor confidence in the cryptocurrency.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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