The current Ethereum ecosystem faces intertwined challenges: Meme tokens are experiencing explosive growth in 2025, with daily trading volumes for tokens like PEPE exceeding hundreds of millions of dollars, and a single address consuming 7% of the total gas fees, causing the mainnet gas fees to spike to 100 Gwei at one point. MEV bots are squeezing the space for regular users through arbitrage, and their speculative nature dilutes resources in core areas like DeFi. Although the foundation allocated $165 million to support DeFi, the siphoning of liquidity continues.
As of Q1 2025, the total locked value in Layer 2 reaches $40 billion, handling over 60% of transaction volume, with gas fees as low as 1/6 of the mainnet, leading to a halving of mainnet fee revenue. Layer 2 token ARB diverts ETH value, and the ecosystem is fragmented with a lack of unified standards. The price of Ethereum hovers around $3,000 in 2025, with concerns escalating as the foundation sells off ETH. Although it has shifted towards the goal of mainnet expansion and shard technology upgrades, reducing gas fees to the current 1/100, it faces competition from Solana with lower fees, which has seen its on-chain transaction volume increase by 36%, and fee revenues exceeding $300 million.
The key to breaking through is to establish dynamic risk isolation for Meme tokens, promote Layer 2 with ETH as the sole gas fee and unified settlement layer, accelerate sharding to enhance mainnet performance, and strengthen the narrative of "Layer 2 security foundation"; otherwise, it may become just an infrastructure provider.
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