Ethereum [ETH] faces competition from Solana [SOL] and Tron, says Andre Cronje

Remarking on the same, Sonic Labs co-founder Andre Cronje has attributed ETH's lackluster performance to mounting competition from Solana [SOL] and Tron

Ethereum [ETH] has faced a challenging period, with its price struggles continuing well into 2025, raising concerns among investors.

Commenting on the same, Sonic Labs co-founder Andre Cronje has attributed ETH’s lackluster performance to mounting competition from Solana [SOL] and Tron, alongside internal conflicts within the network.

Needless to say, the debate over whether Solana has surpassed Ethereum as the leading altcoin has already gained traction, particularly as Solana-based DEXs demonstrated resilience despite a broader memecoin market downturn.

Notably, their trading volumes also remained competitive with Ethereum’s entire ecosystem, spanning both Layer 1 and Layer 2 networks.

Cronje criticizes Ethereum

As Ethereum’s price falters despite key network developments, Cronje has taken to X to shed light on the factors influencing its recent decline.

Cronje has voiced concerns over Ethereum’s declining price, attributing it to key structural issues within its ecosystem.

He argues that Layer 2 projects compromise user experience through fragmented liquidity and reliance on centralized sequencers, while their decision to offload ETH has only exacerbated downward price pressure.

Additionally, shorting activity linked to USDe and an unclear scaling roadmap have further weighed on Ethereum’s market performance.

Cronje also highlights a deeper issue—Ethereum’s leadership and representation—claiming that its most ardent defenders are podcasters, not engineers.

In the meantime, rival blockchains like Solana and Avalanche are gaining ground, offering faster transaction speeds, improved finality, and more user-friendly interfaces, presenting steeper competitive challenges for Ethereum.

He said, 

“I mean, I dont know a single other team who are looking to deploy on Ethereum, its almost always Solana, Avalanche, Base (the ETH trojan horse), (or Sonic – I ofcourse have bias here).”

Is Ethereum losing ground against other altcoins?

Cronje believes that Ethereum is losing ground because competing blockchains actively support native projects rather than maintaining neutrality.

He argues that developers are increasingly choosing alternative networks over Ethereum, preferring ecosystems that offer direct incentives and better infrastructure.

This shift has led to a decline in Ethereum-based innovations, further weakening its position in the market.

As a result, Ethereum faces increasing pressure to adapt, especially as rival blockchains continue to attract builders with superior scalability and developer-friendly environments.

Cronje further added, 

“XRP etc, “USA coin”, Tron, the sheer willpower of Justin and at this point, everyone knows there are no boundaries on the crime he would commit to make Tron the best.” 

Cronje even went as far as to say that if he had to pick an altcoin, Ethereum wouldn’t be his preference. Instead, he would opt for a different blockchain, reinforcing his skepticism about Ethereum’s future.

He concluded by emphasizing his lack of confidence in ETH’s long-term viability amidst growing competition and noted,

“Hell, I dont invest, but if I did, I would choose Solana, Tron, even XRP over ETH.”

Ethereum’s market trend

Meanwhile, Ethereum’s recent price action suggests a potential breakout, with the altcoin reclaiming the $2,350 level and signaling strong bullish momentum.

However, at press time ETH was trading at $2,183.19 after a drop of 2.22% in the past 24 hours as per CoinMarketCap.

Yet, historical trends indicate that similar breakouts have led to significant rallies, fueling optimism for a potential surge toward $3,260.

If ETH sustains its upward trajectory, investors could see a 48% upside.

However, failure to maintain key support levels may result in a downturn, with prices possibly retracing to $1,444.

Thus, as Ethereum navigates market volatility, its ability to hold crucial price thresholds will determine whether it can sustain this rally or face another correction.