Layer-1 networks are busy rolling out their 2026 roadmaps.
By 2025, a disconnect between market prices and the actual value of projects is becoming apparent, and the focus is changing. Recent market swings have proven a valuable point: in the long term, the underlying strength of a project is more important than short-term hype.
Starting 2026, Ethereum founder Vitalik Buterin is prioritizing both the network’s core principle of decentralization and its practical uses in the real world.
The big question is whether this approach actually paid off in 2025.
Ethereum experienced its most successful year to date, seeing record levels of activity on its network. This included a significant increase in transactions, important improvements to how the network functions, continued dominance in the decentralized finance (DeFi) space – holding over 50% of the market – and a dramatic 212% rise in the value of real-world assets (RWAs) being used on the platform.
While we’ve seen growth in this sector, it hasn’t been without its downsides. My analysis of Growthpie data shows that Layer 2 networks experienced a significant 53% decrease in earnings. This drop had a direct impact on Ethereum’s revenue model, resulting in roughly $100 million in lost income.
Ethereum’s recent growth has actually made its financial situation weaker because transaction fees have gone down. This raises questions about whether Ethereum can still achieve its long-term goals of being a truly decentralized system, especially if those lower fees continue.
Decentralization push fuels long-term Ethereum value
Ethereum’s 2025 fundamental-driven approach has divided investors.
Currently, technical analysis and on-chain data suggest a trend towards holding onto Ethereum rather than quick trading, which isn’t ideal for short-term holders. Recent performance supports this idea – Ethereum’s return on investment for 2025 was actually a 10.97% loss, making a cautious approach sensible.
However, others believe that Ethereum’s lower fees and ability to handle more transactions will ultimately make up for any lost income, especially as more applications are developed on the platform. JPMorgan’s recent use of Ethereum for tokenization is a good illustration of this potential.
Looking ahead, 2026 may widen this divide.
The result is a stronger, more lasting dedication to Ethereum. Even with price fluctuations, Ethereum ended 2025 with 20% less held on exchanges – bringing the total to 16.6 million. This shows that the core strengths of Ethereum are becoming more important than simple price speculation.
With Vitalik suggesting a greater focus on decentralization, Ethereum is positioning itself for future growth and value. This development could potentially reduce price swings and even support predictions, like those from Tom Lee, that Ethereum will reach a high value by 2026.
Final Thoughts
- 2025 saw Ethereum record network growth, but L2 revenue drops and lower gas fees pressured the balance sheet.
- Despite short-term losses, lower fees, higher capacity, and moves like JPMorgan’s tokenization set the stage for stronger ETH value in 2026.
Read More
- Clash Royale Best Boss Bandit Champion decks
- Vampire’s Fall 2 redeem codes and how to use them (June 2025)
- Mobile Legends January 2026 Leaks: Upcoming new skins, heroes, events and more
- M7 Pass Event Guide: All you need to know
- Clash Royale Furnace Evolution best decks guide
- Clash of Clans January 2026: List of Weekly Events, Challenges, and Rewards
- World Eternal Online promo codes and how to use them (September 2025)
- Best Arena 9 Decks in Clast Royale
- Clash Royale Season 79 “Fire and Ice” January 2026 Update and Balance Changes
- Best Hero Card Decks in Clash Royale
2026-01-03 22:50