ETH, the native cryptocurrency of the Ethereum network, faces fierce competition in 2025 from SOL, XRP, and SUI, which are challenging its leadership with technological innovations and accelerated growth. However, according to Santiment analysts, ETH remains the best bet for investors and users in the evolving altcoin market.
The crypto ecosystem never rests, and in 2025, the battle for Layer 1 blockchain dominance is more heated than ever. Ethereum, traditionally the second-largest cryptocurrency by market capitalization after Bitcoin, is under pressure from the advance of rivals such as Solana, XRP (Ripple), and Sui Network, each with technical and market propositions that seek to capture the attention of developers and investors.
While Solana boasts of speed and low rates, XRP bets on efficiency in global payments and Sui bursts forth with explosive growth and high potential for decentralized finance (DeFi) and Web3 gaming, albeit with associated risks. Therefore, this article examines Ethereum's recent performance against its competitors, the challenges it faces, and the opportunities that could define its future in an increasingly competitive market.
BUY ETHEREUM HEREThe price of Ethereum (ETH) in the current landscape
Currently, Ethereum is trading around $1.649 US dollars, representing a 4% decline over the past 24 hours. Just a few days ago, it hit a two-year low of $1.385. Analysts at Santiment note that this disappointing performance has raised concerns among investors, who wonder whether Ethereum will be able to maintain its market relevance in the near future.
In her report «Ethereum: Why the Hate? (Other Than Over 3 Years of Disappointment)», the firm acknowledges that the growing development of Layer 2 solutions, which provide greater scalability and lower transaction costs, along with the "slow" and "complex" improvements to the Ethereum mainnet and regulatory concerns, have undermined investor interest in ETH and favored other cryptocurrencies in the market. In addition to this, Santiment also noted that Ethereum's narrative has not been entirely clear, as is the case with other cryptoassets such as Bitcoin, considered "digital gold." All of these factors, according to the firm, have frustrated users, pushing them toward alternative cryptocurrencies that are more accessible, faster, and offer a clear and compelling narrative.
PREPARE YOUR WALLETBut despite the recent drop in Ethereum's price and growing skepticism among investors, Santiment's analysis suggests that There are still reasons for optimism about ETH.
A committed development team
While ETH's performance has been disappointing and competition from other blockchains, along with regulatory and technical challenges, have dampened interest, Santiment highlights that Ethereum remains one of the fastest-growing projects in the crypto ecosystem.The team behind ETH continues to innovate and release improvements, strengthening the project's long-term strength.
In the report, the firm highlighted several of the technological and development milestones achieved by Ethereum despite negative investor sentiment. For example, the mainnet's transition to the Proof-of-Stake consensus protocol with the implementation of The Merge in September 2022; the release of the update Shanghai in April 2023; and the launch of the improvement proposal EIP-4844, also known as Proto-Danksharding, between late 2023 and mid-2024.
Likewise, the firm highlighted the regulatory achievements of the second cryptocurrency in the market, such as the approval and launch of the Ether spot ETF in the United States, and the massive growth of platforms liquid staking like Lido, which captured billions of dollars in TVL, becoming the dominant protocols in the DeFi ecosystem.
LINK CARD AND EARNThe firm also highlighted the growing adoption of Ethereum-based decentralized social protocols, such as Lens Protocol, Farcaster y Ethereum Name Service, as well as its resurgence of network dominance in the decentralized financial ecosystem. According to Santiment, Ethereum has cemented its position as the undisputed backbone of DeFi despite competition from other blockchains.
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A change in market direction is expected
In addition to highlighting the milestones the network has achieved in recent years, Santiment points out that, historically, markets tend to move in the opposite direction to prevailing crowd sentiment. Therefore, the current pessimism could lay the groundwork for a rally, especially considering that metrics such as large wallet accumulation and the constant level of seller exhaustion suggest ETH may be undervalued at these levels.
The firm suggests that while Ethereum faces real challenges, This is not a 'stagnant' project, nor is it a 'scam'., and that there is still hope for a significant recovery in the near future.
Buying opportunity for strategic investors?
Despite the challenges facing Ethereum, Santiment and other financial analysts believe the recent price drop presents an attractive buying opportunity for long-term investors. The extreme bearish sentiment surrounding Ethereum could be a sign that the market is close to bottoming out. Furthermore, the fact that ETH is approaching a historical support zone suggests that a significant rally could be imminent.
BUY ETH ON BIT2MECryptocurrency analyst Ali Martinez has highlighted that this support zone has historically marked market lows and offered solid buying opportunities for forward-thinking investors. If Ethereum maintains its current levels, a relief rally could emerge. Furthermore, upcoming network upgrades, such as Pectra, could significantly improve its scalability, energy efficiency and security overall, rekindling investor interest and attracting new users to the platform.
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