Ethereum, the world’s second-largest cryptocurrency by market cap, is facing a critical juncture. Lauded as the most innovative blockchain a decade ago, Ethereum now seems to be collapsing under the weight of its own ambitions. Central to this downfall is Ethereum’s founder and the de facto “board” of the Ethereum Foundation, Vitalik Buterin.
Unlike Bitcoin’s anonymous creator, Satoshi Nakamoto, Buterin has always been largely influential on what happens in the Ethereum network. Recently, he made a statement on Twitter, asserting his authority over the decision-making process in the Ethereum Foundation. This has raised concerns about the level of centralization within the Ethereum Foundation, a body that was supposed to be a decentralized force driving the blockchain’s evolution.
In contrast to Bitcoin, where miners independently secure the network and choose how they handle their rewards, Ethereum frequently tweaks its protocol, leading it to feel more like an experimental software project than a decentralized financial system. In 2025 alone, the Ethereum Foundation has sold over $13 million worth of ETH, supposedly to remunerate developers and pay operational costs. This action raised questions about the Foundation’s belief in its own network.
Another area of concern is the transition of Ethereum from Proof of Work (PoW) to Proof of Stake (PoS). Despite multiple upgrades, Ethereum hasn’t successfully addressed its scalability issues. At times, the gas fees in the network are so high that it costs more to send ETH than the amount being sent. This frequent spike in fees negates the purpose of transitioning to PoS.
While Ethereum has been busy implementing complex protocol changes, Bitcoin has continued to scale efficiently while maintaining its core principles. Despite the overall market’s growth, Ethereum hasn’t seen the same level of profit as Bitcoin and most altcoins. Furthermore, the ETH/BTC ratio has fallen to a four-year low, signaling Ethereum’s diminishing value.
The narrative of Ethereum as “ultrasound money” is collapsing. Aside from World Liberty Financial, linked to the President Trump family, there aren’t many high-profile companies holding Ethereum on their balance sheets. Contrarily, Bitcoin is being adopted as legal tender and kept as a federal reserve in nations like El Salvador and Bhutan, and held by corporations like MicroStrategy.
The issues Ethereum is currently facing raise questions about its future. Bitcoin, despite its creator’s shortcomings, has managed to gain the trust of governments and institutions worldwide. Ethereum, despite being larger in network size, has yet to surpass Bitcoin in market cap. Without a radical change in governance, Ethereum may soon find itself excluded from the crypto conversation.
Will Buterin follow Satoshi Nakamoto’s path and step away from the limelight? Only time will tell. For now, all eyes are on Ethereum and its future in the rapidly evolving world of cryptocurrencies.
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