2026-01-02 11:24:36

In 2025, Ethereum staged a bizarre contrast—technology kept advancing rapidly, while the token price was on a downward trend. From a high of $4900 down to around $2900, a decline of nearly 40%. Looking at a longer timeline, it dropped 13.92% over 565 days, with volatility soaring to 141%. This disjointed state where technology moves upward while prices fall indeed left many people puzzled.

Reviewing Ethereum’s performance, the two rounds of architecture restructuring with Pectra and Fusaka have been completed, the Layer2 ecosystem is booming (the annual revenue of Base chain has surpassed that of traditional enterprises), and the RWA track has also broken through $2 billion in scale. Logically, these achievements should support the price, but reality delivered a slap in the face.

The root cause actually lies in the Dencun upgrade wave. EIP-4844 achieved a good thing—reducing Layer2 transaction fees by 90%—but side effects also emerged: ETH shifted from deflation to inflation. Before the upgrade, about 7,000 ETH were burned daily; after the upgrade, this number plummeted, and now issuance exceeds burning. The story of the "ultrasound money" is essentially over.

What’s even more painful is that the success of Layer2 has diverted the mainnet’s revenue, with new public chains competing for users, and even Wall Street’s big funds turning their attention to Bitcoin. Ethereum has thus been marginalized.

That said, Ethereum still has a trump card for a comeback: its technological advantages are evident, the ecosystem’s moat is deep, and the RWA market—worth trillions—is waiting to be developed. The question is whether these can truly support the price or if Ethereum will continue to play a secondary role. It all depends on how things unfold next.

ETH4,36%

BTC1,71%

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SigmaBrain

· 41m ago

This is a typical case of "the better you do, the faster you die"... Layer2 exploded, but it ended up draining the mainnet, hilarious. I knew the story was over the moment ETH shifted from deflation to inflation. The ultra-sound money dream is shattered. No matter how advanced the technology is, the price of the coin rules all. Even Wall Street has started playing with BTC. RWA's two billion just to try to hold on? Wake up, the mainnet has already been marginalized. Can it turn around? First, solve the inflation problem. Right now, it's just a negative example of being countered by its own ecosystem.

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MainnetDelayedAgain

· 9h ago

According to the database, this wave of technical upward and downward price swings feels even more disconnected than the Dencun upgrade itself. Waiting patiently for the bloom, but this time it might take more than 565 days. The story of ultrasonic currency is still being written, just in an inflationary version. Layer2 is hot, while the mainnet is just watching the show on the side. Wall Street's money has all moved to Bitcoin, and the fate of Ethereum as a supporting role is written very clearly. If RWA is really going to turn things around, it's been almost a year since the last promise on this matter. It is recommended to be included in the Guinness World Records as the best example of the disconnection between technological progress and coin prices.

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liquidation_watcher

· 9h ago

This is a typical case of "the wife cake has no wife." No matter how advanced the technology is, if the price doesn't move, it's all pointless. Layer2 got popular but instead siphons off the mainnet, Ethereum is shooting itself in the foot. The dream of ultrasonic currency has awakened; now it's just an inflation machine. It's been obvious for a while that after the Dencun upgrade changed the game rules, the entire logic was reversed. Wall Street now recognizes Bitcoin, and Ethereum has become a side dish in the bull market. RWA can't save the current situation no matter how big it is, unless... the consensus changes? Where's the promised deflationary effect? Instead, there's an inverse operation. Ethereum's ecosystem moat is so deep that it still fell like this, indicating the fundamental problem lies on the supply side. A 40% drop, just pretend you didn't see it; keep holding and wait for a turnaround. Those entering now are betting on a miracle happening later; otherwise, this position is really awkward.

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AirdropworkerZhang

· 9h ago

Dear, the Dencun upgrade directly shattered the story of ETH's deflation. Now it's actually inflation, no wonder the price can't hold up. No matter how advanced the technology is, it's useless if no one takes the bait; Layer2's rise is actually draining the mainnet. This wave of Ethereum is a tragedy, bitten back by its own success. The RWA trillion-dollar market sounds great, but the real key is when it can actually be implemented and start making money. Wall Street has all moved on to Bitcoin; ETH is being collectively abandoned.

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ZKProofEnthusiast

· 9h ago

Ha, this is the true portrayal of Ethereum—technological ceiling but price floor. The big intestine has been burned, ultrasonic currency dreams shattered, now it's just a Layer2 pimp. Dencun was really a killer move; fees have dropped, the ecosystem is booming, but what about the token price? It’s directly frozen. Basically, it’s a case of successful backlash—L2 makes money while the mainnet becomes a public good, which is incredibly ironic. Wall Street has all moved on to trading BTC, so what are we waiting for with RWA big pancakes? No matter how advanced the technology is, it’s less direct than a halving. Ethereum now feels like a project that has been counter-killed by its own ecosystem—more optimization leads to more devaluation.

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BearMarketMonk

· 9h ago

Technological progress, falling prices—this is the cost of innovation. The sense of disconnection comes from our desire to have two stories at once. When the ultrasonic currency collapsed, it was clear that ecological prosperity does not equal wealth appreciation. The victory of Layer2 instead drains the mainnet, which is quite ironic. So, ETH is now asking itself—should it focus on infrastructure or on assets? The eternal dilemma of choosing between the fish and the bear paw. Wall Street turning to Bitcoin has actually been hinting at the answer all along. Don’t expect the moat to fill the market sentiment. This round of decline is the market re-pricing faith. Let’s wait and see when the bottom logic will be established.

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PessimisticLayer

· 9h ago

I'm a pessimist, but I speak with data. The victory of Layer2 is the failure of the Ethereum mainnet; everyone can see this logic clearly. Technological progress still causes the coin price to fall, which shows that the market simply doesn't buy it, it's that straightforward. Ultrasound Money is dead; now it's just an inflation machine, no matter how you spin it. Wall Street has all moved on to Bitcoin; are we still here singing the praises of pessimism? Is that interesting? RWA trillion-dollar market? It's not even Ethereum's dish; it still relies on public chains to compete. Fallen from 4900 to 2900—that's the answer. Stop with all the nonsense. Deep ecological moat? Bullshit. Layer2 is already singing its own song of self-reliance. Waiting to see what happens next? I bet five bucks that the next trendsetter will still be someone else. Issuance volume has surpassed burn volume; the trend is clear, and it can't be changed. Coin prices can't be fooled; no matter how good the technical narrative sounds, it's all meaningless.

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BanklessAtHeart

· 9h ago

This is the magical realism of Web3—technologically impressive, but the coin price is plummeting, quite ironic. EIP-4844 cut too harshly, making Layer2 cheaper but hurting the mainnet, feeling a bit like bleeding oneself. Speaking of RWA, if it really takes off, Ethereum still has a chance; it all depends on whether it can hold until that day. The Dencun upgrade is like a double-edged sword; success and failure both depend on Xiao He. Now it's too late to regret. Being split like this is probably the price of an ecosystem maturing, but I really feel for ETH holders. The dream of ultrasonic money has shattered; now it's all about fundamentals and long-term betting. Wall Street has all moved on to Bitcoin; Ethereum is really losing some favor.

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