Ethereum’s Rocky Start in 2025 Could Set the Stage for a Major Comeback
Ethereum has had a rough start in 2025, losing over 46% of its value year-to-date as ETFs failed to draw significant capital and revenue dropped sharply. However, recent developments suggest that the world’s second-largest cryptocurrency might be preparing for a strong rebound — possibly its biggest yet this year.
Signs of a Revival: Three Catalysts to Watch
Despite declining relevance and reduced interest from new users in early 2025, Ethereum# has seen a major spike in activity. According to data from Growthepie, the number of unique weekly active addresses on Ethereum and its Layer 2 chains reached an all-time high — with a 62% week-on-week increase. Additionally, Layer 2 dominance surged by 57%.
By April 30, Ethereum was leading trader sentiment, capturing 82% of market interest, followed by Solana and Bitcoin. Insights from Oriole show that as market greed rises (currently at 56/100), Ethereum is once again gaining bullish traction among investors.
Vitalik Buterin’s Scalability Proposal
Ethereum co-founder Vitalik Buterin recently proposed a new plan to improve the scalability of Ethereum’s execution layer. This change addresses a major bottleneck while keeping the developer experience largely intact. Buterin emphasized that the upgrade would simplify the user experience without disrupting the underlying architecture. While the proposal sparked debate within the community, many see it as a step toward making Ethereum more competitive.
Ethereum vs. Solana: The Ongoing Rivalry
Solana continues to outperform Ethereum across several key metrics. Over the last three months, Solana has seen nearly four times more transactions and holds a $30 billion lead in DEX volume. Its active address count also triples that of Ethereum’s entire Layer 2 ecosystem. Ethereum needs significant growth in both usage and engagement to catch up in the decentralized space.
The Bigger Picture: Institutional Support and Tokenization
BlackRock’s announcement of a digital share class for its $150 billion Treasury Trust Fund — utilizing Ethereum-based infrastructure — could be a long-term bullish signal. The use of Ethereum for tokenizing real-world assets through partners like BNY Mellon aligns with growing institutional interest in blockchain technology.
At the same time, Ethereum ETFs are slowly gaining ground. Farside Investors reported nearly $2.5 billion in inflows over 15 days, despite a single day of negative flow on April 30.
Final Thoughts
After months of decline and doubt, Ethereum may be on the verge of a powerful resurgence. Backed by strong fundamentals, a scalability upgrade, institutional adoption, and renewed trader confidence, ETH might just be ready to reclaim its position in the crypto spotlight.
