A Messari research manager, AJC, ignited intense controversy by declaring Ethereum is 'dying' due to a catastrophic collapse in network fundamentals. Data reveals Ethereum generated just $39.2 million in revenue in August 2025—a 75% plunge from August 2023's $157.4 million and a 40% crash from August 2024's $64.8 million. This represents the fourth-lowest monthly revenue since January 2021, starkly contrasting with peaks exceeding $1 billion during the 2021-2022 DeFi and NFT booms.
AJC argued that Ethereum's core value proposition as a tech platform is eroding, warning that if fundamentals falter, it could lose all superiority claims over Bitcoin. The decline is partly attributed to the March 2024 Dencun upgrade, which reduced transaction fees for Layer-2 networks but slashed base-layer revenue.
The crypto community fiercely pushed back. David Hoffman countered that Ethereum should be valued as a decentralized ecosystem, not a revenue-generating network, calling it the 'fastest-growing emerging economy.' Other analysts highlighted record highs in stablecoin supply, active addresses (over 552,000 daily, up 21% year-over-year), and L2 scaling. Henrik Andersson of Apollo Crypto emphasized Ethereum's role as a neutral base layer for finance, akin to Bitcoin's store-of-value narrative.
AJC dismissed these metrics as misleading, stating active addresses and transactions are 'meaningless' for demand assessment. Historical context notes Ethereum has been declared 'dead' over 150 times since 2014, with about 40 obituaries this year alone. Ryan McMillin of Merkle Tree Capital acknowledged Ethereum's challenges—caught between Bitcoin's digital gold narrative and Solana's speed—but affirmed its staying power due to developer community, DeFi entrenchment, and regulatory acceptance.