Ethereum lost 44% of its value in three months

Ethereum ETH $1,855.23 Bridged Ether (StarkGate) 0.29% Market capitalization $0.16 billion VOL. 24 hours $0.88 billion , which until recently was considered the main competitor to bitcoin BTC $84,172.39 Bitcoin 1.21% Market capitalization $1.67 trillion VOL. 24 hours $1.78 billion , is currently going through its most difficult period in recent years. Since the beginning of 2025, the value of the token has fall en from $ 3,600 to about $ 1,800, which is more than a 44% drop in a quarter. On an annualized basis, the decline was 47%, which contrasts with bitcoin’s 30% growth over the same period. As a result, Ethereum’s market dominance has decreased from 17% to 7.9%.

Against this backdrop, analysts note a decrease in the number of active developers in the Ethereum ecosystem — by 17% in 2024 alone. Instead, Solana SOL $123.80 Binance-Peg SOL -1.51% Market capitalization $0.14 billion VOL. 24 hours $0.44 billion demonstrates the opposite trend, attracting more and more developers and users. The growth of activity on its blockchain for the year is 83%, in particular due to the popularity of meme coins. Ripple XRP $2.08 XRP -0.86% Market capitalization $121.14 billion VOL. 24 hours $0.45 billion also showed significant growth — by 249% for the year, with a market capitalization that increased from $ 30 to $ 127 billion.

The negative dynamics of Ethereum also affected its investment attractiveness. The Sharpe Ratio, a measure of the return to risk ratio, for ETH fell to -0.69. This indicates that even with volatility, investors could have gotten higher returns from less risky assets.

The community pays special attention to governance issues in the Ethereum ecosystem. In particular, analyst Ryan Watkins and Bloomberg point to the lack of adaptation to new realities and a weak political lobby. Unlike other market players, Ethereum founder Бутерін" href="https://noworries.news/biography/vitalij-buterin/" data-bio-id="3642">Vitalik Buterin stays away from cooperation with governments, which limits the project’s impact in the new regulatory environment.

According to analysts, Ethereum’s further decline is possible — the next level of support may be $ 1760. In order for the situation to change in a positive direction, the ETH rate should return above $ 2000 and consolidate there. For now, however, technical indicators, such as the Stoch RSI index, signal a continuation of the downtrend.