A recent declaration by a Messari analyst that Ethereum is “dying” has ignited a fervent debate within the cryptocurrency community. The claim followed a significant drop in the network’s revenue, which reportedly fell to $39.2 million in August, representing a decrease of over 40% year-over-year and approximately 20% month-over-month.
In his post on social media platform X, analyst AJC described Ethereum’s fundamentals as collapsing. However, many in the community were quick to counter this narrative, highlighting several positive metrics associated with Ethereum, including rising application revenue, stablecoin supply, and ongoing layer-2 (L2) scaling developments. They emphasized that Ethereum should be viewed as a commodity rather than a tech stock, suggesting its valuation should not hinge solely on revenue figures.
Henrik Andersson, the chief investment officer of Apollo Crypto, weighed in, asserting that the Ethereum ecosystem remains vibrant. He noted that despite the decline in revenue, key metrics such as stablecoin supply, transaction throughput, and active addresses are either at or near all-time highs. Data from investment research platform YCharts indicated there were over 552,000 daily active addresses on Ethereum as of August 30, a 21% increase since the same period in 2024. Andersson stated his belief that both Ethereum and Bitcoin hold essential roles within crypto portfolios, likening Ethereum’s evolution to becoming the neutral decentralized base layer for finance.
In defense of his revenue-focused assessment, AJC asserted that the collection of fees in Ether (ETH) serves as a central metric. He noted that the demand driving consumption is diminishing, suggesting that the usefulness of active addresses and transaction counts is subjective when it comes to gauging demand. Ethereum has been the subject of premature death declarations numerous times, with estimates indicating it has been labeled “dead” over 150 times since 2014, with about 40 of those incidents occurring this year alone.
Ryan McMillin, the chief investment officer at Merkle Tree Capital, provided further analysis, suggesting that Ethereum’s resilience stems from its adaptability and robust developer community. He indicated that the digital asset is often pronounced dead during periods of market weakness or declining transaction fees. Although the competitive nature of smart contracts might encourage shifts in development and capital, McMillin argued that Ethereum’s established DeFi (Decentralized Finance) protocols and regulatory acceptance afford it greater longevity than its critics suggest.
Despite these concerns, McMillin remarked that Ethereum has been caught in a challenging position for nearly two years, wedged between Bitcoin’s image as digital gold and Solana’s more affordable and faster service. He acknowledged Ethereum’s spot exchange-traded funds, which have opened avenues for traditional finance investments, enhancing Ether’s role in stablecoin adoption and overall network expansion.
However, he warned that this advantage could diminish with the anticipated arrival of Solana ETFs, which could provide an alternative for mainstream investment flows. Overall, the discourse reflects a complex and evolving landscape for Ethereum, illustrating the ongoing contention over its future amid robust competition and fluctuating market conditions.
