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State of Ethereum Q1 2025

May 23, 2025 ⋅  18 min read

Ethereum faced significant headwinds in Q1 2025, from macroeconomic pressure and price underperformance to declining network fees and DeFi TVL. Yet amidst this turbulence, the network demonstrated resilience across its L2 ecosystem, staking infrastructure, and stablecoin economy. Key protocol upgrades like Pectra signal long-term investment in scalability and usability, even as near-term market sentiment remains cautious.
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AJC is a Research Manager at Messari for the Enterprise team. His primary focuses are on Bitcoin and DeFi. Prior to joining Messari, AJC wrote an independent crypto blog. A recent university graduate, AJC majored in Finance and History.

Drexel is a Research Manager at Messari for the Protocol Reporting team with a focus on base layers and DeFi. He is a strong follower of the crypto mullet thesis of diligence in the front and degen in the back.

Mentioned in this report

About the authors

AJC is a Research Manager at Messari for the Enterprise team. His primary focuses are on Bitcoin and DeFi. Prior to joining Messari, AJC wrote an independent crypto blog. A recent university graduate, AJC majored in Finance and History.

Drexel is a Research Manager at Messari for the Protocol Reporting team with a focus on base layers and DeFi. He is a strong follower of the crypto mullet thesis of diligence in the front and degen in the back.

Mentioned in this report