Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite-sized pieces.
In this edition of Markets in Focus, we take a fresh look at Ethereum - its current role, ecosystem, and the factors traders should watch in 2025.
What Is Ethereum (2025 Update)
Ethereum is a decentralized global software platform powered by blockchain technology. It is best known for:
- its native cryptocurrency ether (ETH)
- being the leading platform for decentralized applications (dApps), DeFi, NFTs, stablecoins, and tokenization
Designed to be scalable, programmable, secure, and decentralized, Ethereum allows developers to build financial protocols, marketplaces, games, on-chain organizations, and more.
ETH Beyond Payments
Ether isn’t just a currency - it also powers computation on the network and secures the blockchain through staking.
ETH is accepted as payment by various crypto-native businesses, but its primary role remains fueling the ecosystem.
Tokens and Standards
Ethereum’s ERC-20 standard is still the foundation for many crypto projects. Even in 2025, the majority of new tokens and stablecoins are deployed on Ethereum before expanding to other chains.
Fees & Competition (2025 Reality)
After years of high gas fees, scaling solutions (Layer 2 networks) such as Arbitrum, Optimism, Base, zkSync, Blast and others now handle a majority of Ethereum activity.
This has relieved fee pressure significantly - but it also means part of the value has shifted toward the broader ETH L2 ecosystem.
Competing L1s like Solana and Avalanche continue to grow, yet Ethereum remains the dominant platform for institutional adoption and tokenized assets.
Key Factors to Monitor When Trading Ethereum in 2025
1. Ethereum Foundation Updates
Network upgrades (like the Dencun upgrade earlier in 2024) continue to impact gas fees, L2 adoption, and staking rewards.
Any announcements regarding future upgrades or data availability improvements can move ETH’s price.
2. Vitalik Buterin’s Commentary
Vitalik’s posts and appearances still influence developer sentiment and market expectations — especially on topics like AI-assisted crypto, governance, and network economics.
3. Growth of Ethereum DeFi
Projects such as Aave, MakerDAO, Uniswap, Curve, Lido and new RWAs (real-world assets) drive demand for ETH and gas usage.
DeFi activity on Mainnet and Layer 2 remains one of the biggest price drivers.
4. Stablecoins & Tokenization
Ethereum remains the primary home for:
- USDC
- USDT
- RWA tokens
- institutional tokenization pilots
The stablecoin market recently surpassed $200B, bringing huge on-chain demand.
5. Institutional Adoption & ETH Spot ETFs
Since the launch of ETH spot ETFs in the US earlier this year, inflows and outflows have been closely watched by traders.
On strong inflow days, ETH often sees increased volatility.
6. Regulatory Developments
Any major US, EU, or Asian regulatory decisions can influence ETH’s liquidity, exchange access, and institutional participation.
7. Exchange Listings & Derivatives
Changes in futures markets, funding rates, and major listings often accelerate short-term price movements.
Trading Ethereum CFDs
You can trade Ethereum CFDs with 2× leverage in the Change App:
- Available Monday–Friday
- ETH is one of 14 cryptocurrencies available as a CFD instrument
- Both long (buy) and short (sell) positions are supported
Leverage can amplify gains - but also losses - so manage your risk carefully.
Have a successful trading week with Ethereum and the rest of the crypto market!
Until next week!
