Looking back at 2024, the performance of Ethereum's price was disappointing, and the overall Ethereum ecosystem fell into a slump, with increasing pressure from competitors. Matrixport analysis indicates that entering 2025, Ethereum will face even more severe challenges, and it may be difficult for Ether to achieve a significant surge.
In a dilemma: weak ecosystem, fierce competitors
Matrixport pointed out that since Ethereum completed its upgrade in April last year, gas fees have continued to decline, indicating that the overall activity in the ecosystem remains sluggish. Coupled with low trading volumes, it is expected that if Ether is to achieve a significant surge this year, it will face substantial resistance.
Even more concerning is that protocols like Solana and Sui rapidly rose last year, attracting a large influx of users, resulting in these protocols' tokens outperforming Ether throughout the year.
Matrixport emphasizes that facing challenges from competitors, without significant positive news to stimulate, Ether may continue to lag this year, while competitive projects are expected to further expand their advantages.
#Matrixport Today – Dec 31: #Ethereum’s Struggles: Facing Headwinds Amid Growing Competition in 2025#cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #Crypto #BTC #ETH pic.twitter.com/dHyaDvVyDH
— Matrixport Official (@Matrixport_EN) December 31, 2024
Ethereum's positioning is unclear; traditional financial markets lack resonance.
In addition to pressures from ecological development and competitors, Ethereum's attractiveness in traditional financial markets also appears lacking, leading to unsatisfactory price performance. Matrixport mentioned that after the listing of the Ether spot ETF, the capital inflow was far below expectations, primarily due to a lack of 'compelling narratives' and 'clear application scenarios.'
In contrast, Bitcoin has already established a foothold with the narrative of 'digital gold.' Wyoming Republican Senator Cynthia Lummis even proposed a Bitcoin bill suggesting that Bitcoin be included as a strategic reserve asset.
As we enter 2025, Matrixport states that ETF issuers may need to take on more responsibilities to help Ethereum create a more attractive narrative, allowing investors to glimpse Ethereum's potential and value in technology and application layers.
Matrixport emphasizes that without additional support and market positioning, Ether alone may struggle to bridge the gap with Bitcoin.
#Matrixport Today – Jan 1: #Ethereum’s Challenge: Defining Its Narrative for #TradFi Investors in 2025#cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #Crypto #BTC #ETH #ETF pic.twitter.com/vi4uFeE744
— Matrixport Official (@Matrixport_EN) January 1, 2025
"Matrixport warns: Ether faces severe challenges in 2025, with significant upward resistance" this article was first published on (Blockchain News).
