ETH is at risk of collapse: blockchain under threat in 2025
In 2025, Ethereum (ETH) faces a number of serious challenges that could jeopardize its long-term viability and market dominance. Despite achievements and the transition to Proof of Stake (PoS), several key factors must be taken into account that could lead to the collapse of this platform.
1. Scalability and High Fees
Despite the transition to PoS, Ethereum still faces scalability issues. In 2023, the average transaction cost reached $5-10, but during periods of high demand, this figure can rise to $20-30. It is predicted that by 2025, if significant improvements are not implemented, the average transaction cost could increase to $50. This could significantly limit the number of users and projects willing to work on the platform.
2. Competition with Alternative Blockchains
Many competing platforms, such as Binance Smart Chain, Solana, and Cardano, continue to gain popularity. For instance, as of 2023, Ethereum's market share in DeFi was about 60%, while Binance Smart Chain accounted for 25%. Projections for 2025 suggest that Ethereum's share could drop to 40%, while Binance Smart Chain and Solana could reach 35% and 20%, respectively. This indicates growing competition that may weaken Ethereum's position.
3. Regulatory Risks
With each passing year, regulatory oversight of cryptocurrencies is increasing. By 2025, it is expected that more than 80% of countries will implement strict rules for cryptocurrency platforms. If Ethereum faces stringent requirements from regulators, it could lead to a decrease in interest from developers and users. It is projected that if such measures are introduced, the number of active Ethereum users could decline by 30%, negatively impacting its ecosystem.
4. Security Vulnerabilities
Security remains a critically important aspect for any blockchain platform. In 2022, losses due to hacks and vulnerabilities in smart contracts on Ethereum amounted to over $1.2 billion. If such incidents continue, it could undermine user trust. It is projected that by 2025, the number of vulnerabilities could increase by 25%, creating additional risks for users and investors.
5. Transition to Decentralized Finance (DeFi)
With the transition to PoS and the increase in DeFi projects, Ethereum has become the foundation for many financial applications. However, as of 2023, about 70% of all DeFi applications faced liquidity issues. If these problems are not resolved, it could lead to a loss of trust and decreased platform usage. It is projected that by 2025, if DeFi does not show sustainable growth, the number of active users could decline by 40%.
Conclusion
Ethereum, despite its achievements, faces numerous challenges that may threaten its future by 2025. Issues with scalability, competition, regulatory risks, and security vulnerabilities pose serious threats to the stability of the network. If Ethereum fails to adapt to these challenges, there is a real risk of its collapse, which could change the landscape of the cryptocurrency industry.#CryptoAdoption $ETH