Ethereum, once hailed as the foundation of a decentralized digital future, is rapidly losing momentum in a crypto market reshaped by Donald Trump’s embrace of blockchain technology. The value of Ether has dropped 44% in 2025, putting it on track for its worst quarterly performance since 2022. Bitcoin is up 30% in the same period, while Ethereum has plunged 45% over the past year.
Once the ideological alternative to Bitcoin, Ethereum is now seen as adrift. Standard Chartered cut its year-end Ether forecast by 60%, citing an “identity crisis.” Developers are leaving. In 2024, the number of active Ethereum developers dropped 17%, while Solana grew 83% year-over-year, becoming the top ecosystem for new developers.
The shift is playing out not just in code, but in Washington. Ethereum founder Vitalik Buterin was absent from a White House summit earlier this month where Donald Trump met with industry leaders. Instead, Zach Witkoff, son of one of Trump’s top business allies, posted on X, “We stand with the entire ETH community,” as he prepared to attend in their place.
Muted Presence in Washington
Ethereum’s detachment reflects Buterin’s longtime strategy to keep the platform decentralized and politically neutral. But critics say the result is a project increasingly left out of crypto’s new center of power. “People expected Ethereum to step up and be involved in politics and institutions,” said Vivek Raman, a researcher and executive. “That is literally not really possible.”
Ethereum’s detachment reflects Buterin’s longtime strategy to keep the platform decentralized and politically neutral. But critics say the result is a project increasingly left out of crypto’s new center of power. “People expected Ethereum to step up and be involved in politics and institutions,” said Vivek Raman, a researcher and executive. “That is literally not really possible.”
Tensions within the Ethereum community have spilled into public view. On social media, Buterin pushed back against growing demands for change. “If you ‘keep the pressure on,’ then you are creating an environment that is actively toxic to top talent,” he wrote. “YOU ARE MAKING MY JOB HARDER.”
Ethereum’s technical roadmap has also fueled criticism. Updates designed to reduce transaction fees by shifting activity to “Layer 2” blockchains have pulled volume away from Ethereum’s base layer. That, combined with a perceived lack of urgency from the Ethereum Foundation, has contributed to Ether’s weakening price.
Fractures in Development Strategy
Many users have pointed to the Ethereum Foundation’s slow pace in implementing key updates. Some argue the Foundation has neglected market realities by prioritizing decentralization over network competitiveness. “A lot of people interpret its actions as complacent,” said Armani Ferrante, a former Ethereum developer now working on Solana.
Buterin and the Foundation recently hired two new co-executive directors to help navigate the turmoil. But in December, he rejected pressure to pivot Ethereum’s philosophy. “If the goal of blockchains now is just being a casino, then that’s not even a thing that I feel excited about being a part of,” he said.
Even Ethereum’s most promising use case—stablecoins—has not scaled beyond speculative trading and illicit activity. Meanwhile, Trump’s $TRUMP meme coin, built on Solana, has generated millions in fees. Solana now processes more than five times as many transactions as Ethereum, with nearly double the active addresses.
Michael Novogratz, a longtime Ethereum backer, acknowledged the struggles. “Building these decentralized systems on top of these blockchains has proven harder than we thought,” he said.
Ethereum remains the leading platform for total developer activity, according to Electric Capital. But its share of new talent is shrinking.
