Ethereum metrics are telling 2 very different stories right now

A Messari expert sparked heated statement implicit the play aft declaring Ethereum is “dying” arsenic web gross declined successful August.

In an X station connected Saturday, a Messari probe manager, AJC, stated, “Ethereum’s fundamentals are collapsing,” arsenic Ethereum's gross from fees successful August was $39.2 million, down implicit 40% year-over-year and astir 20% month-over-month.

Source: AJC

But galore who work the station disagreed, pointing to Ethereum’s rising metrics, app revenue, stablecoin supply, continued L2 scaling and a favoritism betwixt Ethereum being a commodity, alternatively than a tech banal — meaning it shouldn’t beryllium valued based connected revenue. 

Ethereum is inactive a vibrant ecosystem  

A ample portion of Ethereum’s fall successful revenue has travel arsenic a effect of the Dencun upgrade successful March 2024, which lowered transaction fees for layer-2 scaling networks utilizing it arsenic a basal furniture to station transactions.

Speaking to Cointelegraph, Henrik Andersson, main concern serviceman of concern steadfast Apollo Crypto, said it is improbable Ethereum is dying, due to the fact that information from Ethereum L2s analytics instrumentality growthepie shows it’s inactive “a vibrant ecosystem with stablecoin supply, throughput, and progressive addresses are each astatine oregon adjacent to all-time high.” 

As of Aug. 30, determination were besides implicit 552,000 regular progressive addresses connected Ethereum according to concern probe level YCharts, representing a 21% summation since the aforesaid clip successful 2024. 

There were implicit 552,000 regular progressive addresses connected Ethereum arsenic of Aug. 30. Source: YCharts

“We judge some Ethereum and Bitcoin person a spot successful a crypto portfolio,” Andersson said. 

“Ethereum is becoming the neutral decentralized basal furniture for concern and conscionable similar Bitcoin is not valued connected gross but arsenic a store of value, we don’t judge Ethereum tin beryllium valued solely connected its revenue.”

In effect to critics, however, AJC defended his usage of gross to worth the layer-1 blockchain, explaining that due to the fact that it’s collected successful Ether (ETH), 1 of the largest humanities request drivers of depletion is present “trending toward zero.” 

At the aforesaid time, AJC argued that progressive addresses and transactions are “meaningless statistic arsenic it pertains to demand.” 

Ethereum has been declared “dead” 40 times this year

Ethereum has been declared by assorted sources astatine slightest 150 times since 2014; astir of these deaths person been recorded this year, with astir 40, according to Ethereum Obituaries.

Ethereum has been declared dormant 150 times earlier ACJ’s post. Source: Ethereum Obituaries

Ryan McMillin, main concern serviceman astatine Merkle Tree Capital, told Cointelegraph that Ethereum continues to accommodate and is mostly declared dormant successful moments of communicative weakness, falling fees, transaction trending lower, oregon erstwhile competitors outpace it.

He said that successful theory, because astute contracts are a competitory sector, developers and superior could dilatory but permanently migrate elsewhere.

“But successful practice, its developer community, entrenched DeFi protocols, and regulatory acceptance springiness it much staying powerfulness than the obituaries suggest; its existent communicative is it volition beryllium the TradFi concatenation of choice, though the SOL ETF whitethorn disrupt that too,” McMillin said. 

“The bigger communicative is that crypto is maturing into an ecosystem of differentiated assets, and Ethereum volition stay 1 of the cardinal pieces for years to come, and contention with different L1s is precise healthy.” 

McMillin said helium doesn’t deliberation Ethereum is “dying,” but said it has been stuck successful a “difficult spot” for astir 2 years due to the fact that it’s trapped betwixt Bitcoin’s communicative arsenic integer golden and Solana’s transportation arsenic the faster, cheaper alternative. 

Related: Ether whales person added 14% much coins since April terms lows

“Ethereum’s ultra-sound wealth framing was ne'er going to triumph against Bitcoin’s harder monetary premium, and erstwhile it comes to throughput and cost, Solana simply offers magnitudes of improvement,” helium said. 

One country that has helped Etherum successful 2025 is its spot exchange-traded funds, which unlocked accepted concern flows and positioned Ether arsenic a levered play connected stablecoin adoption and web growth, according to McMillin.

“But that vantage whitethorn not past long, spot Solana ETFs are expected successful the coming weeks, which could rapidly level the playing tract for mainstream superior inflows.” 

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