potential in the 2025 bull market is under increasing scrutiny, with many questioning whether it can deliver strong gains. While Ethereum has long been a leader in blockchain, recent trends raise concerns about its ability to outperform in the next cycle.
For example – Markus Thielen, Head of Research at 10x Research, has expressed his own doubts, suggesting that it may lag behind Bitcoin this year. He pointed to a 1% decline in active validators over the past month, highlighting risks such as greater unstaking and weak demand beyond Ethereum’s staking ecosystem.
Thielen’s cautious outlook makes Ethereum a less attractive investment for those eyeing 2025’s rally.Ethereum’s underwhelming performance in 2024 highlighted its mounting challenges. While Bitcoin surged by 121.4%, Ethereum lagged significantly, delivering only 46.3% returns. The stark difference can be attributed to the January 2024 launch of Spot Bitcoin ETFs, which attracted $35.3 billion in inflows and propelled Bitcoin to new heights.
Thielen also criticized Ethereum’s recent network upgrades, particularly the Duncan upgrade in March, which sought to lower gas fees and boost transaction capacity. According to him, the upgrade came too late to take advantage of the memecoin surge, allowing rival platforms like Solana to gain significant ground.
He also expressed skepticism about the upcoming Pectra upgrade in 2025, pointing out that of Ethereum’s 19 previous upgrades, only two had a major effect on the price. In fact, both occurred during Bitcoin bull markets too.that improved marketing strategies and a clearer value proposition could drive greater demand for the asset. Lowe also pointed out that Ethereum’s diversification appeal compared to Bitcoin could attract more investors.