Is ethereum blockchain in the crisis?

A few months ago, there have been many doubts about Ethereum Blockchain.

It is not a matter of doubts about the technical performance of this Blockchain, which does not show any signs of problems from this point of view, but with regard to the actual use of users.

In fact, Ethereum has not been created as a financial origin, such as Bitcoin, but as a network of computers that implement smart contracts in an uncertain, unreliable, and non -suspended way. His goal was always Provide a service to users, Instead of providing financial origin.

in Ethereum white paper In 2014, Vitalik Burin wrote:

“What Ethereum intends to provide is Blockchain with a fully integrated integrated programming language that can be used to create” contracts “that can be used to codish the functions of the arbitrary state transmission, allowing users to create any of the systems described above, as well as many others who have not yet imagined, simply by writing logic in a few lines of the code.

Ethereum Blockchain in the crisis?

Nevertheless, over time, the real great success of Ethereum was the empowerment of the launch of many codes on the encryption markets, starting with the 2018 ICO boom and bypassing the MEMECOIN mutation for 2021.

For example, Shayb from Shiba Eno It was launched as a symbol on Ethereum.

However, starting in 2023, ETHEREUM began facing a competition from Solana from this point of view, to the extent that now on Solaa is the new symbols are launched.

The truth is that in Solana it is much simpler, cheaper and faster to launch a symbolic symbol that he made this activity accessible to all. Ethereum, on the other hand, is a little backward in this regard.

The symbol of this delivery was the launch of Donald Trump’s official symbol, on January 18 of this year, specifically launched on Solana Blockchain and not on ETHEREUM programs.

Nevertheless, the number of medium daily transactions registered on Ethereum Blockchain It does not seem to be a decrease.

During the year 2021, this number settled much higher than a million, and in 2023 he settled around this level.

While Solana was stealing the role of the Memokin leader from Ethereum, between 2024 and 2025, the number of daily averages recorded on Blockchain increased over 1.1 million, then over 1.2 million.

Not even with the decline in 2025, it has returned to a million, so technically, Ethereum Blockchain does not seem to be in the bear market at all.

Defi problem

The real problem is from Purely financial nature.

For example, TVL from Defi In Ethereum at the end of 2024 it peaked 77 billion dollars, which is much lower than the highest level at all times 109 billion in November 2021.

Moreover, during the year 2025, less than 50 billion decreased, a level in line with twelve months.

Although these numbers do not suggest that there is a real crisis, they indicate a little suffering.

Ethereum dominance in TVL Defi is still very high (52 %), but Solana grows (7 %).

The truth is that at the end of 2024, Solana has ever recorded its highest level in TVL Defi, reaching approximately $ 12 billion for the first time in history. The peak in 2021, however, stopped at 10 billion.

However, even for Solana, the year 2025 witnessed a strong decrease, up to the current $ 6.6 billion, which is much higher than twelve months.

In other words, it is clear that Solana has got rid of the TVL share of Ethereum.

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Dex

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Where the competition from Solana is larger in Dex, or Decentralization.

The fact is that with the dramatically low fees, Solana from Ethereum takes all users who trade in small amounts on DeX, and this also has exceeded.

With only a reference to the total daily trading sizes on DeX, its climax in ETHEREUM amounted to $ 7.6 billion in 2024, at an average at the end of the year about 3 billion.

Instead, those in Solana have seen an incredible increase in more than $ 35 billion the day after the launch of Memecoin Trump, and the Mediterranean at the end of 2024 approximately 5 billion.

Monthly folder analysis, on Dex on ethereum in December 2024, exceeded 92 billion dollars, and decreased to 86 in January 2025, and 64 in March. It should be noted that the high peak was at all $ 117 billion in May 2021.

Instead, for Solana in December 2024, they reached $ 120 billion, rose to 258 in January, and returned to 52 in March. It is worth noting that in 2021 there were no large folders yet on Dex on Solana, but in March, Dex sizes returned to Ethereum to overcome those on Solana.

Mecpin

All of this is already affected greatly by the Mimwins mutation, which sometimes appears in the encryption markets only to disappear until back to appear.

If one analyzes the use of Ethereum Blockchain taking into account these Memecoin, then the current situation does not look good at all. However, if one ignores the micoin mutation, the dominance of Solana and all other Blockchains is still noticeable.

In other words, during periods where there is no micoin mutation, Solana does not exceed ethereum on any scale, with the exception of the number of transactions registered daily on Blockchain.

However, when a new mutation from Memecoins arrives, Solana explodes, while Ethereum is now on a stop.

ETHEREUM BLOCKCHAIN

It is clear that the price Eth It is affected, because in previous years it was very positively affected by the prosperity of the use associated in particular to the micoin boom.

It seems as if it was a huge speculative bubble in recent years, inflated on the price of ETH, which was created by using Memecoins on ETHEREM, then once this bubble exploded, it was not formed again because last year he turned into Solana.

It must be remembered that the fees on Ethereum Blockchain are pushed with an original encrypted currency, ETH, and therefore the more Ethereum Blockchain, the more demand for the market on ETH.

It is important to emphasize that since September 2022, when Ethereum has moved from proof of work to proving supply, ETH’s circulating offer has stopped from the increase, and remains largely stable at about 120 million ETH.