Ethereum's 2025 Struggles: Price Plunge, Governance Woes, and DeFi Setbacks

Ethereum in 2025: Industry Experts Analyze the Price Slump, Governance Woes, and DeFi Setbacks

Ethereum, the second-largest cryptocurrency by market capitalization, has faced a series of challenges in recent months, including a price slump, governance issues, and setbacks in the decentralized finance (DeFi) sector. Industry experts have weighed in on these issues, offering insights into Ethereum's current state and potential solutions.

Price Slump and Market Performance

Ethereum's price has struggled in 2025, failing to break through the $2,500 barrier and retreating to $2,090. Whale addresses have been on a selling spree, dumping a massive 640,000 ETH worth $1.5 billion and pushing the altcoin king further from its target. The recent Bybit hack, which resulted in the theft of approximately $1.4 billion worth of Ethereum, also contributed to the network's highest weekly outflows, at $300 million. Meanwhile, a wave of bearish sentiment and dwindling investor confidence sent ETH spot ETF outflows to a 30-day peak of $94.27 million last week, signaling a clear investor retreat.

Vivien Lin, Chief Product Officer at BingX, commented on Ethereum's performance: "Compared to Bitcoin, which has surged over 90% this year, Ethereum's performance feels underwhelming, leading many holders to wonder when it will reclaim a new all-time high."

External and Internal Factors Affecting Ethereum

Recent price swings in the crypto sector have prompted speculation about the onset of a bear market. Though the market has experienced a reprieve following President Donald Trump's announcement of a US Crypto Strategic Reserve, the long-term impact of this recovery remains uncertain. Other factors, such as Trump's recent tariffs on Canada, Mexico, and China, have also contributed to the declines in prices across major cryptocurrencies. Additionally, crypto markets are beginning to feel the impact of inflation on the United States' economy, with traders increasingly weary that the Federal Reserve will raise interest rates. All of these factors have affected Ethereum's performance.

Karlos Bujas, Graduate Trading Analyst at Wire