Ethereum Faces Intense Pressure as Builder Momentum Shifts
By: cryptofrontnews|2025/05/03 05:30:01
0
Share
Ethereum risks losing young developers to Solana and Cosmos as founder momentum shifts toward faster, more supportive ecosystems.Hackathon-heavy strategies are failing as builders seek serious funding and support from accelerators, not $5,000 coding contests.Without scalable UX and L2 composability fixes, Ethereum may fall behind newer chains offering seamless and frictionless onboarding.Ethereum's dominance in developer interest is facing serious erosion as new ecosystems gain traction. From H1 2021 to H1 2025, Ethereum led founder applications. However, by H1 2025, Solana and Cosmos nearly closed the gap. Besides, a growing number of young builders now favor alternative chains. This marks a threat to Ethereum's long-held position.Alliance DAO data shows a striking shift. In H1 2021, over 75% of founders built on Ethereum. But by H1 2025, Ethereum's share dropped considerably. Cosmos and Filecoin steadily rose. Additionally, ecosystems like Bitcoin, BNB, Sui, and Aptos now draw increasing attention. Hence, founder preferences now reflect a much more diversified market.Hackathon Overload and Builder FatigueEthereum community member Jacob Franek recently raised concerns. He pointed to Ethereum’s overreliance on hackathons. According to him, hackathons rarely produce viable products. They often attract short-term participation rather than long-term builders. Besides, $5,000 prizes don't launch world-changing startups.Instead, Franek urges the community to fund accelerators, incubators, and venture funds. Moreover, he believes Ethereum must prioritize app builders over excessive research funding. Consequently, young talent often migrates toward AI or other faster-moving ecosystems. This talent drain threatens Ethereum’s long-term relevance.Urgent Need for Better Scaling and UXEthereum must also fix L2 composability and scale its L1. Though ongoing, these tasks remain extremely complex. However, the industry demands simple onboarding and seamless UX. Franek stresses that younger users choose the easiest apps. Hence, better scaling and improved UI could restore user growth.The shift in founder momentum also reflects broader dissatisfaction. Ethereum still leads, but its edge shrinks each cycle. Solana now rivals Ethereum in startup applications, showing clear upward momentum. Significantly, Solana rebounded after falling off founder radars in late 2021.Moreover, Avalanche and Polkadot continue losing ground. New chains fill the vacuum with faster innovation and better support. The Ethereum community must adapt or risk losing the next generation of builders.As of now, Ethereum trades at $1,848.64 with a 24-hour volume of $12.44 billion. Its price dipped 0.08% in the last 24 hours. However, the real concern lies beyond price—in sustaining relevance amid rising competition.The post Ethereum Faces Intense Pressure as Builder Momentum Shifts appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
You may also like
Will MicroStrategy fall into a death spiral? What will the macro trend be in the second half of the year?
The cryptocurrency industry may gradually shift from the hype of native altcoins to real asset tokenization, on-chain machine economy, and a more mature industrialization phase.
Morning Report | Illinois signs the strictest digital asset tax law in the U.S.; RWA tokenization market size surpasses $43 billion, institutions accelerate the migration of on-chain assets
Overview of Important Market Events on June 17
Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot
Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...
From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance
"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...
Dalio's important long article: How to position in the current market environment?
Do not confuse the excitement for new technologies with whether those tech stocks are attractive.
OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun
OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...
New gameplay for participating in initial offerings on cryptocurrency exchanges
In this competition for cutting-edge assets, what has always been truly scarce is not the technology, but the underlying equity itself.
Why Is Bitcoin Down Today? What the Hawkish FOMC Means for SpaceX, Gold and Nasdaq
Why is Bitcoin down today? A hawkish FOMC pressured crypto and gold, while SpaceX surged to a $2.5 trillion valuation and Nasdaq gained attention. Here's what happened and why traders are looking beyond Bitcoin.
DeepSeek Financing Story
DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.
Morning Report | DeepSeek completes over $7 billion in financing, with a valuation exceeding $50 billion; Musk's personal wealth has surpassed the total market value of Bitcoin
Overview of Important Market Events on June 16
Cursor, why did you get on Musk's spaceship?
SpaceX set a record with its IPO, spending a staggering $60 billion to acquire the popular AI programming unicorn Cursor just four days later. Musk is using the ultimate puzzle of "super computing power + top coding engine" to propel the market value skyrocketing, surpassing Amazon in one fell swoop...
In the name of charity, for the benefit of the family: How the Trump family turned charity into profit?
This set of "beautiful rhetoric and value return to one's own people" has not stopped at charitable foundations; it has now almost been transferred intact to American Bitcoin.
Will Gold Break $4,500 After Tonight's Fed Decision? What XAUT and PAXG Traders Need to Know
The Federal Reserve announces its June rate decision tonight. Could gold break $4,500 next? Explore the latest gold price prediction, key Fed scenarios, and what they mean for XAUT and PAXG traders.
SharpLink CEO: How to understand that Ethereum developers have just surpassed 1 million?
The most important question in the cryptocurrency industry is not which chain is the fastest, but rather where top builders choose to build in the long term. Ethereum has just surpassed one million cumulative developers; what does this number mean?
Morning Report | MiCA grace period expires on July 1; Kalshi's trading volume in the first week of the World Cup breaks $5.1 billion, setting a record
Overview of Important Market Events on June 15
The foundation of SpaceX's trillion-dollar valuation: Who is dividing Musk's annual capital expenditure of tens of billions?
SpaceX Supply Chain Revealed: The Invisible Gold Mine Behind the Trillion-Dollar "Space Dream," from Nvidia's Computing Power Monopoly to China's Sole Supplier of Special Materials, these overlooked water-selling talents are the true wealth creation engine.
How to exit after asset tokenization?
Currently, three models have emerged, aimed at providing instant exit routes for tokenized real-world assets. Their differences lie in: who holds the funds required for exit, how efficiently the funds operate, and the extent to which this model can be scaled across different asset types.
The stablecoin positioning battle escalates: When compliance is just a ticket to entry, will USD1 become the biggest winner?
How does the GENIUS Act reshape the stablecoin landscape?
Will MicroStrategy fall into a death spiral? What will the macro trend be in the second half of the year?
The cryptocurrency industry may gradually shift from the hype of native altcoins to real asset tokenization, on-chain machine economy, and a more mature industrialization phase.
Morning Report | Illinois signs the strictest digital asset tax law in the U.S.; RWA tokenization market size surpasses $43 billion, institutions accelerate the migration of on-chain assets
Overview of Important Market Events on June 17
Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot
Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...
From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance
"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...
Dalio's important long article: How to position in the current market environment?
Do not confuse the excitement for new technologies with whether those tech stocks are attractive.
OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun
OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com
