Ethereum in 2025: Volatility, Maturity, and Strategic Renewal

Ethereum’s price performance in 2025 has been mixed. Behind the scenes, the Ethereum Foundation has been restructured, and technologically, ETH’s future viability is shaping its plans.

Investors experienced a rollercoaster ride in 2025: ETH started the year trading around $3,300, but from March to May the price plummeted below $2,000. Suddenly, the perennial number two cryptocurrency appeared vulnerable, and fears of an Ethereum crash spread.

But then ETH returned to its usual strength, reaching a new all-time high of around $4,950 in August. Subsequently, however, the tide turned again, and shortly before Christmas, Ethereum was hovering around $3,000 and is expected to post a moderate year-end loss.

The Ethereum Foundation was the center of infighting in early 2025

Some of ETH’s problems this year were self-inflicted. As early as January, a dispute over the direction of the Ethereum Foundation could no longer be swept under the rug. One faction demanded that Ethereum be presented in a more business-friendly light. ETH founder Vitalik Buterin, on the other hand, tends to emphasize the less monetary aspects of the Ethereum ecosystem and advocates for use cases such as censorship-resistant messaging services.

In February, the foundation’s director, Aya Miyaguchi, moved from day-to-day operations to the position of president – ​​thus paving the way for new leadership.

A dual leadership now guides the affairs of the Foundation: ETH developer Hsiao-Wei Wang is considered a representative of the Buterin camp, while entrepreneur Tomasz Stanczak (Nethermind) serves as the contact person for the business community.

The internal power struggles thus appear to have been temporarily resolved, allowing ETH to once again highlight its diverse strengths and avoid negative publicity due to internal strife.

Ten years of Ethereum: How ETH became the number one altcoin

After all, July 30th marked ten years of Ethereum, a milestone that highlighted ETH’s significance far beyond the crypto scene. $166 billion in stablecoins are now locked on .ETH for decentralized finance (DeFi) purposes; other major DeFi altcoins like Solana (SOL), Tron (TRX), and Binance Coin (BNB) don’t even come close to such sums combined.

Technological advancement at ETH through continuous updates

For ETH to maintain its market leadership in the DeFi sector, regular technological updates are necessary. In May, Pectra was rolled out, bringing improvements in user-friendliness. This was followed in December by the Fusaka upgrade , which allowed Ethereum to increase capacity within the ecosystem while simultaneously reducing fees.

Two major updates per year are now set to become the norm for Ethereum. It is already becoming clear that ETH cannot ignore the risks posed by rapid advances in quantum computing . The sheer volume of data accumulated over the past decade in Ethereum is also becoming a challenge, and solutions must be found to ensure that access to the ETH network is not limited to high-performance computers in the future.

Ethereum will have matured by 2025 through ETFs and ETH companies

From the perspective of the traditional financial industry, Ethereum reached the Wall Street mainstream in 2025. The Ethereum ETFs, launched in the summer of 2024, languished almost inconspicuously for nearly twelve months – but then things started to pick up. In July, the ETH ETFs recorded record capital inflows of $5.4 billion, and August, with an increase of $3.6 billion, made it clear: large investors were no longer limiting their portfolios to Bitcoin, but were significantly adding Ethereum to their holdings. This summer, thanks to this “catch-up demand,” ETH was even able to outperform Bitcoin in price performance.

Ethereum also caught up with Bitcoin companies like Strategy in 2025. The concept of publicly traded companies continuously purchasing Bitcoin is now finding imitators in the Ethereum world. Bitmine Immersion (BMNR), led by star investor Tom Lee, has risen to become the second-largest crypto company worldwide by accumulating ETH. Investors now have interesting options for structuring their investments on traditional stock exchanges with Ethereum companies and ETH ETFs.

The Bybit hack shocked not only Ethereum

Ethereum experienced a shocking moment in February. The cryptocurrency exchange ByBit was hacked, and the attackers targeted ETH. Their haul, worth $1.4 billion in Ethereum, marked a sad record for the crypto industry. However, ByBit quickly managed to replenish its ETH reserves. This restored the ETH balances of ByBit customers and prevented a domino effect.

Artificial intelligence – Standards in preparation

For 2026, Ethereum is poised to incorporate the overarching theme of artificial intelligence (AI) into its strategy. It is working on standards to transparently integrate AI agents into the ecosystem.

ETH aims to continue its pioneering role in this area; the ERC-20 token standard, NFT standards, and, of course, the Ethereum Virtual Machine (EVM) are highly successful precursors. The Ethereum Foundation expects AI agents to be responsible for more than half of all ETH transactions within this decade and intends to ensure this development is secure.

Conclusion: ETH will have no time to rest, even in 2026

Perhaps the public controversies surrounding the Ethereum Foundation at the beginning of the year did have a silver lining. For all the sympathy for the “cypherpunk” movement, which ETH mastermind Vitalik Buterin also embraces, Ethereum has long been fulfilling functions worth billions for the financial markets, offering the potential for price gains.

Balancing the ideals of early ETH supporters with their pragmatic DeFi users and large corporations is a challenging task. But the Foundation now seems to be recognizing this; the heated exchange has led to a willingness to compromise, which will hopefully be borne out in 2026.

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(Featured image by Shutter_Speed via Pixabay)

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