Ethereum’s sluggish price performance has puzzled many investors this cycle, but Sonic Labs co-founder Andre Cronje believes he has the answer. The DeFi godfather attributes Ethereum’s struggles to growing competition from Solana and Tron, internal inefficiencies, and a failing scaling roadmap.
Cronje took to X to outline key reasons behind Ethereum’s price struggles, despite the network benefiting from major catalysts.
At the top of his list:
- Fragmented liquidity and centralized sequencers in Layer-2 solutions are harming user experience.
- Layer-2 projects dumping ETH holdings are putting downward pressure on price.
- Short selling linked to the US dollar and scaling inefficiencies are worsening Ethereum’s market position.
- Ethereum’s leadership is dominated by podcasters rather than engineers, leaving key technical challenges unaddressed.
Cronje also questioned the Ethereum Foundation’s recent leadership changes, suggesting they do little to restore confidence in the asset.
“I’d Choose Solana and Tron Over Ethereum”
Ethereum isn’t just battling internal struggles, it’s also losing ground to faster, more efficient blockchains. According to Cronje, Solana (SOL), Avalanche (AVAX), and Tron (TRX) are gaining traction because they offer superior speed, finality, and user experience.
Unlike Ethereum, these networks directly support native projects, attracting developers and increasing adoption.
“Hell, I don’t invest, but if I did, I would choose Solana, Tron, and XRP over ETH,” Cronje stated.
This highlights a major shift in developer sentiment, Ethereum’s once-dominant position is being challenged by platforms prioritizing usability and efficiency.
Ethereum’s Bleak Price Outlook, Could $1,000 Be Next?
Ethereum’s price recently dipped below $2,000, triggering speculation that further declines could be on the horizon. On-chain analysts warn that ETH could slide to $1,000 if market conditions worsen.
Currently, Ethereum trades at $2,215, with whales accumulating over one million ETH at a discount. Despite this, key catalysts like Ethereum ETF approvals and inclusion in the U.S. Crypto Strategic Reserve have failed to drive a strong rally.
Traders watch $2,857 as a key resistance level and $2,084 as crucial support. With Ethereum navigating a choppy market season, the question remains, can it regain its dominance, or is this the start of a deeper decline?
Can Ethereum Overcome Scalability and Competition Challenges?
Ethereum is at a crossroads. While Layer-2 adoption and regulatory wins should be bullish catalysts, scalability concerns and stronger competition are weighing it down.
For Ethereum to reclaim momentum, it must address liquidity fragmentation, refine its scaling roadmap, and restore investor confidence. Without these changes, Cronje’s prediction that Ethereum will continue losing ground to Solana and Tron may become reality.
Investors and developers will be closely watching Ethereum’s next moves, but the once-undisputed king of altcoins is struggling to keep its crown.
