Looking back at 2024, Ethereum's price performance was disappointing, and the overall Ethereum ecosystem fell into a slump, while pressure from competitors tightened. Matrixport's analysis indicates that entering 2025, Ethereum will face more severe challenges, and achieving a significant rise for Ether may be difficult.
In dire straits: ecological weakness, fierce competition from rivals
Matrixport points out that since Ethereum completed its upgrade last April, Gas fees have continued to decline, indicating that overall ecological activity remains sluggish. Coupled with low trading volume, it is expected that if Ethereum is to achieve a significant rise this year, it will face greater resistance.
What is even more concerning is that protocols like Solana and Sui rapidly rose last year, attracting a large influx of users, leading to these protocols' tokens outperforming Ethereum throughout the year.
Matrixport highlights that facing challenges from competitors, without significant positive news to stimulate, Ethereum may continue to be at a disadvantage this year, while competing 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, with no resonance in traditional financial markets.
In addition to pressure from ecological development and competitors, Ethereum's attractiveness in traditional financial markets appears lacking, resulting in unsatisfactory price performance. Matrixport mentioned that after the listing of the Ethereum spot ETF, the influx of funds has been far below expectations, mainly due to the lack of a 'compelling narrative' and 'clear application scenarios.'
In contrast, Bitcoin has already established its foothold with the narrative of 'digital gold'. Wyoming Republican Senator Cynthia Lummis even proposed a Bitcoin bill, suggesting that Bitcoin be included in strategic reserve assets.
As we enter 2025, Matrixport states that ETF issuers may need to take on more responsibilities to help Ethereum create a more appealing narrative, allowing investors to glimpse Ethereum's potential and value in technology and applications.
Matrixport emphasizes that without additional support and market positioning, it may be difficult to close the gap with Bitcoin relying solely on Ethereum itself.
#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: Ethereum faces severe challenges in 2025, with significant upward resistance" This article was first published on (Blockchain Client).
