Ethereum News Today: Bitcoin's Strategic Retreat, Ethereum's Quiet Rise, and the Battle for Crypto's Future

El Salvador’s early adoption of Bitcoin as legal tender has yielded mixed results over the past four years. The country’s Bitcoin Office recently highlighted the strategic reserve, which contains 6,313 BTC valued at over $702 million, and noted that 80,000 public servants have received Bitcoin certifications. Despite these developments, the government scaled back its Bitcoin policies to comply with a $1.4 billion loan deal with the IMF. As part of the agreement, El Salvador repealed the Bitcoin legal tender law, discontinued public funding for Bitcoin purchases, and reduced support for the Chivo Bitcoin wallet. An IMF report confirmed that the country’s BTC holdings have not increased since the loan agreement was signed in December 2024. Critics argue that the government’s Bitcoin initiatives have not benefited the general population sufficiently and have called for more educational programs to promote widespread adoption. Meanwhile, the broader crypto market continues to evolve, with Bitcoin’s illiquid supply hitting a record 14.3 million BTC. This represents approximately 72% of the total supply, with long-term holders continuing to accumulate despite market volatility. The growth of illiquid supply suggests that investors view Bitcoin as a long-term store of value, with recent data indicating a 20,000 BTC increase over the last 30 days. On-chain metrics highlight a persistent accumulation trend, even after Bitcoin peaked at $124,000 in mid-August. This sustained demand reflects growing institutional confidence in Bitcoin’s role in diversified portfolios. The Ethereum network, on the other hand, faced a significant drop in revenue and network fees in August. Ethereum revenue declined by 44%, despite ETH reaching an all-time high of $4,957 on August 24. Network fees also fell by about 20% compared to July, as the Dencun upgrade in March 2024 reduced transaction costs for layer-2 scaling solutions. The drop in revenue has sparked debate over Ethereum’s financial sustainability, with critics questioning the viability of its layer-1 model. Proponents argue that Ethereum remains a foundational platform for the future of decentralized finance. Meanwhile, institutional interest in Ethereum is on the rise, particularly in the form of staking and ETH public treasuries. Ethereum’s price forecast for the next decade remains optimistic, with some analysts predicting a potential move toward $6,000. Technical indicators suggest that Ethereum is consolidating around key resistance levels, with the $4,540 mark acting as a critical pivot. On-chain data shows strong accumulation trends, with over $172 billion in stablecoins now on the Ethereum network. This liquidity surge, combined with growing institutional ETF demand, is seen as a positive signal for long-term price action. Additionally, Ethereum’s dominance in stablecoin issuance and DeFi activity has reinforced its role as a settlement layer for tokenized assets. In the broader crypto ecosystem, Ethereum faces competition from high-performance blockchains like Solana. Solana’s DEX volume has surpassed Ethereum’s, with a 25.36% share of total trading volume compared to Ethereum’s 23.3%. However, while Solana excels in transaction throughput and cost efficiency, it suffers from high address churn, with 96.6% of addresses cashing out within a day. This short-term trading behavior raises questions about Solana’s long-term adoption potential, despite its technical advantages. In contrast, Ethereum continues to attract institutional investors seeking long-term value, with its yield-bearing features and staking mechanisms becoming increasingly attractive. The Ethereum vs. Solana debate highlights the trade-off between scalability and long-term network stability. Ethereum remains a preferred choice for blue-chip NFTs and large-scale DeFi applications, while Solana appeals to users seeking faster transactions and lower fees. As the crypto market continues to mature, the focus is shifting toward sustainable adoption and institutional-grade infrastructure. Both Ethereum and Bitcoin are increasingly viewed as essential components of diversified portfolios, with their respective fundamentals and market dynamics positioning them as key players in the next decade of crypto investment.

Source:

[1] El Salvador Celebrates Four-Year Bitcoin Anniversary, but ... (https://cointelegraph.com/news/el-salvador-bitcoin-anniversary-mixed-results-4-years)

[2] Bitcoin Illiquid Supply Hits Record 14.3M as Long-Term ... (https://www.coindesk.com/markets/2025/09/07/bitcoin-illiquid-supply-hits-record-14-3m-as-long-term-holders-continue-to-accumulate)

[3] Ethereum revenue dropped 44% in August amid ETH all- ... (https://cointelegraph.com/news/ethereum-revenue-drops-44-percent-august-all-time-high)

[4] ETH Targets $6K - Ethereum Price Forecast as ETFs and ... (https://www.tradingnews.com/news/ethereum-price-forecast-eth-usd-6k-usd-breakout-on-etf-and-stable-cooin-demand)

[5] Solana beats Ethereum in DEX volume, but SOL traders ... (https://ambcrypto.com/solana-beats-ethereum-in-dex-volume-but-traders-arent-interested-in-sol)