- Ethereum risks losing young developers to Solana and Cosmos as founder momentum shifts toward faster, more supportive ecosystems.
- Hackathon-heavy strategies are failing as builders seek serious funding and support from accelerators, not $5,000 coding contests.
- Without scalable UX and L2 composability fixes, Ethereum may fall behind newer chains offering seamless and frictionless onboarding.
Ethereum’s dominance in developer interest is facing serious erosion as new ecosystems gain traction. From H1 2021 to H1 2025, Ethereum led founder applications. However, by H1 2025, Solana and Cosmos nearly closed the gap. Besides, a growing number of young builders now favor alternative chains. This marks a threat to Ethereum’s long-held position.
Alliance DAO data shows a striking shift. In H1 2021, over 75% of founders built on Ethereum. But by H1 2025, Ethereum’s share dropped considerably. Cosmos and Filecoin steadily rose. Additionally, ecosystems like Bitcoin, BNB, Sui, and Aptos now draw increasing attention. Hence, founder preferences now reflect a much more diversified market.
Hackathon Overload and Builder Fatigue
Ethereum community member Jacob Franek recently raised concerns. He pointed to Ethereum’s overreliance on hackathons. According to him, hackathons rarely produce viable products. They often attract short-term participation rather than long-term builders. Besides, $5,000 prizes don’t launch world-changing startups.
Instead, Franek urges the community to fund accelerators, incubators, and venture funds. Moreover, he believes Ethereum must prioritize app builders over excessive research funding. Consequently, young talent often migrates toward AI or other faster-moving ecosystems. This talent drain threatens Ethereum’s long-term relevance.
Urgent Need for Better Scaling and UX
Ethereum must also fix L2 composability and scale its L1. Though ongoing, these tasks remain extremely complex. However, the industry demands simple onboarding and seamless UX. Franek stresses that younger users choose the easiest apps. Hence, better scaling and improved UI could restore user growth.
The shift in founder momentum also reflects broader dissatisfaction. Ethereum still leads, but its edge shrinks each cycle. Solana now rivals Ethereum in startup applications, showing clear upward momentum. Significantly, Solana rebounded after falling off founder radars in late 2021.
Moreover, Avalanche and Polkadot continue losing ground. New chains fill the vacuum with faster innovation and better support. The Ethereum community must adapt or risk losing the next generation of builders.
As of now, Ethereum trades at $1,848.64 with a 24-hour volume of $12.44 billion. Its price dipped 0.08% in the last 24 hours. However, the real concern lies beyond price—in sustaining relevance amid rising competition.
