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A heated debate over whether or not Ethereum is “dying” has erupted on-line after a Messari analyst flagged a pointy decline within the blockchain’s income, even after ETH hit an all-time excessive and stablecoin exercise on the community surges.
Messari analyst AJC highlighted on X that Ethereum generated $39.2 million in income in August, down 75% from $157.4 million in the identical month in 2023 and 40% decrease than final 12 months’s $64.8 million. This marked the community’s fourth-lowest month-to-month income since January 2021.
“Ethereum is dying,” he mentioned. “Ethereum’s fundamentals are collapsing, however the .eths don’t care as long as the worth goes up.”
The analyst added that the decline in community fundamentals is “alarming,” regardless of ETH hitting a brand new all-time excessive of $4,953.73 on Aug. 24.
ETH value chart (Supply: CoinMarketCap)
EHT has since retraced over 13% to commerce at $4,300.40 as of three:17 a.m. EST.
A big a part of the drop in income occurred after Ethereum builders rolled out the Dencun improve in March of final 12 months, which lowered transaction charges for layer-2 networks which are constructed on prime of the Ethereum chain.
Some On Crypto Twitter Say Ethereum Is Nonetheless Thriving
AJC’s put up ignited a debate on X, with a number of Crypto Twitter group members arguing that Ethereum is definitely thriving.
In accordance to X consumer Tom Donleavy, utilizing income to worth a community is “counterproductive,” including that this valuation technique may work for apps, however not for networks.
One other X consumer agreed, and mentioned that “income right now isn’t related.”
“What you need is max income 10 years from now,” the X consumer mentioned earlier than including that the ”greatest method to try this is to decrease costs as little as potential and drive mass adoption, stay the winner of a winner-take-all market as you onboard a number of billion customers, after which value accordingly.”.
Ethereum On-Chain Metrics Rise, However Are They A True Indication Of Demand?
One other X consumer named “Rick” mentioned that it’s tough to say that Ethereum is dying when on-chain metrics ‘have truly began exhibiting constructive developments.”
Arduous to say Ethereum is dying when exercise metrics have truly began exhibiting constructive developments although small.
App income is reaching ATHs, stablecoin provide ATH, and continued L2 scaling all level to probably the most flourishing decentralized monetary system ever created, powered by… pic.twitter.com/l8x7CvMA3B
— Rick (@CryptoRick98) September 7, 2025
“App income is reaching ATHs, stablecoin provide ATH, and continued L2 scaling all level to probably the most flourishing decentralized monetary system ever created, powered by $ETH,” Rick mentioned in a remark.
AJC replied to the remark and mentioned these metrics “are all meaningless statistics” in the case of demand for the Ethereum blockchain.
Whereas lively addresses might present elevated utilization, the rise in transaction depend may additionally be as a consequence of a rising variety of small transactions which are executed autonomously by bots and never precise customers.
One Ethereum blockchain consumer also can spin up a number of addresses, so the variety of lively addresses on a community may not be a real indication of adoption.
With reference to layer-2 scaling, AJC argues that this “doesn’t imply all that a lot if there’s no marginal consumer demand for one more L2.”
Stablecoin Growth Occurring On Ethereum
Whereas AJC and the crypto group debate whether or not Ethereum is certainly dying, information from Token Terminal exhibits that the provision of stablecoins on the blockchain is hovering and not too long ago reached a brand new ATH.
Based on a report by Token Terminal, Ethereum has added round $5 billion in new stablecoins over the previous week, pushing the whole to $165 billion. That is greater than double the stablecoin provide on Ethereum from January 2024.
That’s after US President Donald Trump signed the GENIUS Act into legislation in July. It’s the first complete regulatory framework for fee stablecoins, and establishes licensing and regulatory necessities for home and international issuers.
The Act additionally mandates AML compliance and anti-terrorism laws, in addition to offers customers with protections.
Stablecoin market share for every blockchain (Supply: DeFiLlama)
Ethereum has been the blockchain of selection for stablecoin issuers, and at the moment has a 53.84% share of stablecoin market. That is virtually double the next-biggest stablecoin market share of 27.86%, which belongs to Justin Solar’s TRON blockchain.
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