Ethereum, once the undisputed leader in blockchain development and decentralized finance, is facing serious challenges in 2025. The number of active developers working on Ethereum has dropped sharply-down 80% from its 2021 peak, with code contributions falling by two-thirds. This decline in developer activity is a troubling sign, since the strength of any blockchain ecosystem depends on its builders and innovators. At the same time, Ethereum’s price has fallen by 60% since late 2024, and user engagement is stagnant, despite major technical upgrades like proof-of-stake and fee burning.

Meanwhile, Solana is rapidly gaining ground. In April 2025, Solana’s decentralized exchange (DEX) volume surpassed Ethereum’s, reaching over $50 billion compared to Ethereum’s $39 billion. Solana also handles tens of millions of transactions daily-far outpacing Ethereum’s roughly one million per day-thanks to its faster and cheaper network. This has attracted both users and developers, fueling a 64% surge in Solana’s price in just one month. Although Ethereum still leads in total value locked and stablecoin liquidity, Solana’s momentum is undeniable.

To fight back, Ethereum is betting big on zero-knowledge Ethereum Virtual Machines (zkEVMs), which promise to make the network faster and cheaper by using advanced cryptography. The Ethereum Foundation and projects like Polygon are racing to deliver zkEVM technology within two years, hoping it will restore the network’s competitive edge. However, this timeline is ambitious, and some critics worry that rushing such complex upgrades could lead to bugs or security issues. If Ethereum succeeds, it could win back developers and users. But if it stumbles, it risks falling even further behind as the crypto world continues to evolve.

In short, Ethereum is at a critical turning point. The next two years will determine whether its bold zkEVM strategy can help it reclaim its leadership, or if Solana and other rivals will continue to pull ahead.