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Ethereum, once the leader in smart contracts and decentralized applications, now facing significant challenges from within and outside its ecosystem. With its price stuck between $3,200 and $3,500 for weeks, Ethereum’s dominance in the altcoin market appears to be under threat. Competitors like XRP and Solana are emerging as strong contenders and are ready to take over Ethereum.
Ethereum’s Price Struggles Continues
Ethereum’s (ETH) price has been stuck in a consolidation phase, unable to break past the $4,000 mark. Over the past two months, ETH has recorded losses of nearly 20% in value.
Meanwhile, the ETH/BTC ratio a metric comparing its value to Bitcoin has dropped by 19% since early December, highlighting its weakening position in the market.
Adding to Ethereum’s worries, its ETF performance has turmoil. While Bitcoin ETFs saw inflows for ten consecutive days, Ethereum ETFs have recorded outflows, with $15.9 million leaving the market.
Ethereum Foundation Internal Conflict
The Ethereum Foundation (EF), which has long been central to Ethereum’s development, is now struggling with internal challenges. High-profile developers like Eric Conner and Danny Ryan have left, citing frustrations and personal challenges.
These exits highlight growing concerns about leadership stability and the foundation’s vision.
Even Ethereum’s founder, Vitalik Buterin, has acknowledged the need for urgent improvements in scalability, security, and user experience.
Ethereum Faces Growing Competition
Adding to the internal struggles, Ethereum is facing competition from within its ecosystem. Konstantin Lomashuk, co-founder of Lido, recently established a “Second Foundation” to support Ethereum’s development.
Meanwhile, rivals like Solana and XRP are taking advantage of Ethereum’s weaknesses. Solana is known for its high scalability, which processes a staggering 60-65 million daily transactions, far from Ethereum’s 1-1.3 million.
Additionally, Solana has consistently outperformed Ethereum in daily transaction fees, despite Ethereum’s higher fee fees per transaction.
Ripple’s XRP, on the other hand, has surged by 350% against Ethereum since November 2024. Even with delays in XRP ETF approval, Goldman Sachs employee Dom Kwok believes XRP could soon surpass Ethereum as the second-largest cryptocurrency.
