Is Ethereum a wise investment in 2025?

Ethereum experienced a remarkable growth of 50% in July 2025, attracting the attention of investors worldwide. This exceptional performance raises legitimate questions about the fundamental value of this asset in the current context of the crypto market.

Recent Performance and Market Context

This 50% increase does not occur in a vacuum. Ethereum is benefiting from a series of major technical developments in 2025, notably the implementation of the Dencun and Pectra updates which have significantly improved the scalability and user experience of the network.

Data shows that the Ethereum ecosystem continues to dominate the DeFi market with about 60% of the total value locked, representing 166 billion dollars. The Lido staking protocol alone exceeds 41 billion dollars of staked ETH.

Technical and Economic Fundamentals

The growing adoption of Layer-2 solutions has allowed Ethereum to maintain its dominant position despite competition. Platforms like Arbitrum now handle up to 40,000 transactions per second, hosting over 600 decentralized applications.

The burn mechanism introduced by EIP-1559 continues to play a crucial role in the economy of Ethereum, creating deflationary pressure on the supply of ETH. This dynamic, combined with the constant increase in staking, contributes to reducing the circulating supply available in the crypto market.

Positioning Against the Competition

Despite the emergence of ambitious alternative blockchains, Ethereum maintains its competitive advantage thanks to its vast ecosystem of developers and applications. The growth of DeFi 2.0 projects on Ethereum and its Layer-2 solutions is a testament to this vitality, with Uniswap v4 recording a 300% increase in trading.

Investment Perspectives

In the current context, the 50% increase in July 2025 could be interpreted as a reflection of solid fundamentals rather than mere speculation. Ongoing technical innovations, increasing institutional adoption, and the expansion of the ecosystem support this thesis.

Analysts suggest that if current trends continue, with the potential approval of Ethereum ETFs and ongoing technical improvements, ETH could reach valuations between $8,000 and $12,000 by the end of the fourth quarter of 2025.

However, it is important to remain aware of the regulatory challenges and inherent market risks in the crypto market before making any investment decision.