Ethereum (ETH) is having a rough year in 2025. Its price has dropped by nearly 50% since January. In comparison, Bitcoin (BTC) and Solana (SOL) have performed much better. ETH is not just falling in price—it’s also losing its place in the crypto world.

Last year, Ethereum gained only 47%. That is far less than the 400% it made in the 2021 bull run. At the same time, Bitcoin and Solana hit new highs. Because of this, Ethereum’s market share fell from 19% to just 7%.

Now, in 2025, ETH is down almost 50%. The ETH/BTC chart is at its lowest point in years. The SOL/ETH chart, on the other hand, shows Solana is gaining fast.

Layer-2 upgrades hurt Ethereum’s revenue

Ethereum’s focus on Layer-2 tech is one reason for its slow growth. In March 2024, Ethereum launched the Dencun upgrade. This added a new feature called “blobspace” to help store Layer-2 data.

This change made Ethereum faster and cheaper to use. But it also caused a drop in revenue. Since April 2024, Ethereum’s supply has started growing again. More than 730,000 new ETH tokens have been created. This inflation is making the token less scarce, which is bad for its price.

Solana’s meme coin boom adds fuel

Solana is growing fast, thanks to a wave of meme coin trading. A new platform called Pumpfun went live in January 2024. It helped launch many meme coins and added over 17 million new users to Solana.

These new users helped push Solana’s price and network fees higher. As more people use Solana, it earns more. This is the opposite of what is happening with Ethereum.

Bitcoin attracts more big money through ETFs

Another big problem for Ethereum is the lack of interest from big investors. Spot Bitcoin ETFs have been a huge hit. Since launch, they have pulled in $39.56 billion in net inflows. That helped drive BTC’s 130% price jump since 2024.

Ethereum has ETFs too, but they are not as popular. ETH ETFs only gained $2.49 billion. That’s too small to make a real impact on its price.

The key reason? Bitcoin is now seen as “digital gold.” Many investors trust it as a safe long-term bet. Ethereum does not yet have a strong story like that.

Companies bet on Bitcoin—and now Solana

Public companies are also buying Bitcoin. The best example is Michael Saylor’s firm. It now holds over 553,000 BTC. This trend is helping Bitcoin grow even more.

Now, some companies are starting to invest in Solana too. But Ethereum has not seen the same support. Few firms are adding ETH to their balance sheets. This shows a clear lack of trust or interest from the business world.

Ethereum faces growing threat from hackers

Cyberattacks are another problem. Ethereum has become the top target for crypto hacks. Since 2024, more than 50% of stolen crypto came from the Ethereum network.

These hacks make users nervous. They also lead to selling pressure, which pushes ETH’s price down even more.

Ethereum tries to make a comeback

The Ethereum Foundation is now working hard to fix these issues. It is making changes in leadership. It also plans to focus on scaling and better tools.

One big step is the Pectra upgrade, due on May 7, 2025. This update will make Ethereum faster and more private. It also aims to improve the user experience.

A new group called Ethrealize is also stepping in. Its goal is to promote Ethereum to big investors. They want to build new products that help ETH stand out.

Can Ethereum bounce back?

Ethereum still has one of the biggest developer communities. Many apps and tokens are built on it. But the road ahead will be tough.

To stay in the game, Ethereum must fix its revenue problems, attract big investors, and stop the hacks. The Pectra upgrade and the work of Ethrealize could help.

For now, Ethereum is in a weak spot. It lags far behind Bitcoin and Solana in 2025. But with new plans in motion, there is still hope for a comeback.