Cardano Founder Predicts Ethereum's Market Share to Drop 40% by 2035

Cardano founder Charles Hoskinson has made a bold prediction about the future of Ethereum, stating that the world’s second-largest cryptocurrency will not survive the next decade or two. Hoskinson, who co-created Ethereum in 2014 before leaving to launch Cardano, believes that Ethereum’s design flaws and technological issues will ultimately lead to its downfall.

During a recent AMA session, Hoskinson highlighted several architectural flaws in Ethereum’s design, including its accounting model, virtual machine, and consensus model. He argued that these issues, combined with the network’s proof-of-stake system and layer-2 solutions, will make it difficult for Ethereum to maintain its position in the market. Hoskinson described Ethereum’s layer-2 solutions as “parasitic,” predicting that they will continue to drive activity away from the main chain and ultimately lead to its demise.

Hoskinson also criticized Ethereum’s lack of a good on-chain governance system, stating that this will make it difficult for the network to address its technological issues and maintain its user base. He predicted that as users migrate to other blockchains, Ethereum will gradually be eclipsed by Bitcoin DeFi and other more efficient systems. Hoskinson compared Ethereum to Myspace and BlackBerry, both of which were once dominant players in their respective markets but ultimately faded into oblivion as newer, more efficient systems took over.

Hoskinson’s comments come as Ethereum has underperformed the broader crypto market, with the token down over 40% against Bitcoin since the beginning of 2025. Despite this underperformance, Ethereum remains the industry’s second-largest crypto by market capitalization, with a current price of $1,791. However, Hoskinson’s prediction suggests that Ethereum’s dominance in the market may be short-lived, as newer and more efficient blockchains continue to emerge.

Hoskinson’s prediction about Ethereum’s future is based on his belief that the network’s design flaws and technological issues will ultimately lead to its downfall. He argues that Ethereum’s proof-of-stake system and layer-2 solutions are not built for long-term success, and that the network’s lack of a good on-chain governance system will make it difficult for it to address these issues. Hoskinson’s prediction is a stark reminder of the challenges facing Ethereum as it seeks to maintain its position in the rapidly evolving crypto market.