Foreign media commentary suggests that Michael Saylor’s recent criticisms of Ethereum are not new. The article states that while Ethereum is indeed facing intensified competition from other public blockchains and its price performance has lagged behind some major assets, equating this pressure directly to a “collapse in market confidence” lacks sufficient evidence.
ETH has recently shown weak performance.
The article notes that ETH underperformed during the recent market correction, briefly falling toward the $1,600 range and trading below multiple medium- and long-term moving averages. This movement has reinforced market perceptions of its short-term weakness and further amplified bearish sentiment.
However, the article argues that weaker prices only indicate that the market is repricing and cannot alone prove that Ethereum’s fundamentals have failed. What matters more right now is whether ecosystem expansion can continue amid intensifying competition.
Solana and Layer 2 solutions drive traffic diversion
Saler's core argument is that Ethereum is facing sustained pressure from Solana, BNB Chain, Sui, Hyperliquid, and multiple Layer 2 networks. The article suggests this assessment is not without merit.
Among these, retail trading activity has increasingly shifted to Solana, Hyperliquid has rapidly expanded in the perpetual contracts market, and Ethereum’s Layer 2 roadmap has also dispersed liquidity across different networks. These changes are eroding Ethereum’s former centralized ecosystem advantages.
Institutional demand remains supportive.
However, the article also notes that if trust in Ethereum had truly eroded significantly, institutions would not continue building projects around it. Ethereum still possesses the deepest smart contract ecosystem and the highest DeFi liquidity, and serves as the primary settlement layer for multiple institutional blockchain projects.
The article also highlights a contrast: Thaler previously stated in 2024 that the approval of an Ethereum spot ETF was unlikely and that it would struggle to gain significant institutional adoption. However, such ETFs have since been launched and have attracted billions of dollars in assets, becoming one of the mainstream crypto products accessible to institutions.
Overall, this review does not deny the competition and price pressures facing Ethereum, but rather argues that the current debate is not about whether it has already "collapsed," but whether it can reprove its growth potential in a more crowded market.