Is Ethereum Dead?

“Is Ethereum dead?”

This is a trending argument that is appearing in various crypto communities and media. Which is not the first time; it has been happening since 2017; in fact, it has happened so many times that in the Lex Fridman podcast in 2021, Vitalik Buterin said, “If I had a nickel for every time someone declared Ethereum dead, I’d have…. Well, a lot of nickels.” 

But is Ethereum really dead? Or is it simply evolving into something even more powerful? 

Why the Question Resurfaced Again?

Ethereum has been declared “dead” countless times. According to the Ethereum Obituaries, it died roughly 136 times from reasons like ICO collapse, high gas fees, and Merge skepticism to Layer 2 revenue shifts. 

Yet, like a phoenix, it continues to rise from the ashes, reinventing itself and proving its resilience. The latest wave of FUD (Fear, Uncertainty, and Doubt) comes amid Bitcoin’s price surge while Ethereum lags behind, along with concerns about Layer 2 networks pulling liquidity away from Ethereum’s base layer. 

These concerns have led some investors and analysts to the question, “Is Ethereum Dead?” Notably, Charles Hoskinson, who in a recent YouTube video predicted that Ethereum wouldn’t be around in the next 15 years and also predicted that Layer-2 chains would kill Ethereum.

Let’s analyze Charles Hoskinson’s claim with data: is it true or not?

Are Layer-2 chains killing Ethereum OR Making it Stronger?

Charles Hoskinson and many other skeptics have declared that Ethereum’s dominance is waning as Layer-2 networks are “Siphoning away” revenue from the base chain. But is this declaration a death knell or a sign of Ethereum’s evolution into a modular ecosystem?

Let’s take a look at the numbers:

Source: DeFi Llama (DeFi TVL, Stablecoin Supply, DEX Volume) and Cryptorank (Active Addresses, Transactions Fees) 

The key takeaway from the above table is that Ethereum is still dominating in TVL with $52B and stablecoin supply with $124B, which is far higher than Solana. Ethereum also houses 1,381 projects, which is slightly higher than Solana, exhibiting a testament to Ethereum’s vibrant ecosystem. 

But Charles Hoskinson wasn’t comparing Ethereum with Solana; he was talking about Layer-2 networks pulling liquidity and revenue from the Ethereum blockchain’s base layer, but that also doesn’t seem true, as Ethereum remains on top with holding 83% of all DeFi TVL and Stablecoin in value, with its DeFi TVL ($52B) being 15% larger than all the L2s combined ($8.2B). Ethereum also has a larger stablecoin supply of $124B, whereas combined L2s have $9.35B (Base+Optimism+Arbitrum+Polygon). 

 Although there are still some metrics where L2s are overtaking Ethereum, such as:

Hoskinson is right on Layer-2 blockchains, handling almost 95% of Ethereum’s transaction volume. Does this mean Ethereum is dead? Again, no. Why? Because: 

• L2s Expand Ethereum’s Reach: They bring in millions of users who wouldn’t pay high gas fees. 
• Ethereum Still Profits: L2s settle on Ethereum, paying for blockspace and burning ETH (EIP-1559).
• The “Superchain” Vision: Ethereum is becoming a settlement layer for a vast network of rollups, similar to how AWS powers the internet.  

Even experts like Omid Malekan, a professor at Columbia Business School and an expert in blockchain and cryptocurrencies, recognized the confusion and tried to clear the FUD around it. Explaining in a podcast how L2s are the only viable way to scale any blockchain, and L2s don’t compete with Ethereum and can’t siphon value from ETH; L2s complete it, as security is not free.

Bitcoin’s Rally Vs Ethereum’s Lag

With Ethereum at $1836, its lowest price in almost five years, the ETH/BTC ratio shows Ether’s relative strength in relation to Bitcoin at $96186. Bitcoin’s rise was fueled by ETF approvals and institutional demand. Meanwhile, Ethereum’s price has struggled to keep up. Does this mean ETH is failing?

This sentiment was also raised by Quinn Thompson, Chief Investment Officer (CIO) of Lekker Capital, who declared ETH “completely dead” as an investment in a recent tweet. He also shared a few metrics of Ethereum to support his declaration. 

But before jumping on the FUD utility wagon, with this proactive statement, let’s get some facts right: 

• Bitcoin is a Macro Asset: BTC is increasingly treated as “digital gold,” benefiting from macroeconomic trends. 
• Ethereum is a Utility Network: ETH’s value comes from its ecosystem, not just speculation. While price action lags, Ethereum’s fundamentals remain strong.
• Total Value Locked (TVL): With $47.49B locked, Ethereum still is the largest smart contract platform. 
• Layer 2 Growth: Optimism, Arbitrum, and Base are thriving, proving Ethereum’s scalability. 
• From “Ultra Sound Money” to “Ultra Useful Money”: ETH isn’t just a store of value; it’s the fuel for a global decentralized computer. 
• Institutional Interest is Growing: BlackRock’s Ethereum ETF filing and increasing staking adoption show long-term confidence. 
• The Next Catalysts: Ethereum’s upcoming upgrades (Dencun, Proto-Danksharding) will further reduce costs and boost scalability.  
• Staking Surge: Over 30% of ETH supply is now staked, securing the network and reducing sell pressure.

Final Thoughts

Ethereum has been left for dead before, only to come back stronger. The current price lag, Layer 2 dominance, and FUD are just another chapter in its evolution. While according to the data, Ethereum is *STILL* leading in the value war with the largest TVL, stable coin supply, and providing security to Layer-2 blockchain, and earning more from L2s (via rollup fees) than its own base layer. As layer-2s are just extending Ethereum’s reach, not competing with it. 

Rather than dying, Ethereum is maturing into a foundational layer for the future of finance and the internet. As Vitalik Buterin once said, “Ethereum’s goal is not to be ‘perfect’ today, but to keep improving over time.” And that’s exactly what it’s doing. 

So, is Ethereum dead? No—it’s just getting warmed up. 🚀