Ethereum (ETH) is Lagging Behind, Andre Cronje Reveals the Contributing Factors!

Jakarta, Pintu News – Andre Cronje, co-founder of Sonic Labs, recently revealed some factors that led to the decline in Ethereum (ETH) price.

In a series of tweets on X (formerly Twitter), Cronje highlighted increased competition from other blockchains such as Solana (SOL) and Tron (TRX) as the main cause, as well as internal issues faced by Ethereum.

Check out the full news below!

Andre Cronje’s Analysis of Ethereum’s Decline

According to Cronje, one of Ethereum’s main issues is the use of layer 2, which leads to fragmentation of liquidity and a non-optimal user experience.

According to him, these layer 2 projects tend to sell their Ethereum (ETH), which in turn affects Ethereum’s price performance in the market. In addition, selling pressure from stablecoins such as US Dollar Electronic (USDe) and an ineffective scalability roadmap also add to the burden on Ethereum.

Cronje also criticizes the lack of technical representation in Ethereum’s defense. He believes most Ethereum defenders are podcasters, not engineers who can provide technical solutions.

Even the appointment of a new director at the Ethereum Foundation doesn’t seem enough to change Cronje’s view on the prospects of investing in Ethereum.

Read also: Altcoins plummeted massively, why did the crypto market crash today (10/3/25)?

Increased Competition from Other Blockchains

Cronje also highlighted the growing competition from other blockchains such as Solana (SOL) and Avalanche (AVAX), which offer better transaction and finalization speeds. These blockchains also have a superior user interface, which makes them more attractive to developers and users.

According to Cronje, the direct support these blockchains give to their native projects makes them more attractive than Ethereum’s neutral approach.

This has led many development teams to choose to build their projects on blockchains other than Ethereum. “I don’t invest, but if I did, I would choose Solana, Tron, and Ripple (XRP) over Ethereum,” Cronje said.

Also read: 3 Altcoins to Hunt During Market Crash After Crypto Summit 2025

Gloomy Ethereum Price Predictions

After Ethereum’s price dropped below $2,000, on-chain analysts started predicting that it could fall to $1,000. Currently, Ethereum is trading at $2,215, with whales continuing to collect it at a discount.

Despite some important catalysts such as the approval of the Ethereum ETF and inclusion in the Crypto Strategic Reserve, Ethereum’s price performance is still unsatisfactory. Analysts expect resistance levels at $2,857 and support at $2,084 as Ethereum faces a volatile market.

Conclusion

With the various challenges faced, Ethereum’s future seems fraught with uncertainty. Nonetheless, there are still opportunities for recovery if the identified issues can be addressed and Ethereum can improve the value proposition for users and developers.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. Andre Cronje Outlines Reasons for Ethereum’s Underperformance This Cycle. Accessed on March 10, 2025
• Featured Image: The Crypto Times