In a notable shift within the cryptocurrency markets, Ethereum (ETH) has outpaced Bitcoin (BTC) in the past 24 hours, fueled by positive developments surrounding its transition to a proof-of-stake (PoS) consensus mechanism. While Bitcoin remains dominant on longer-term performance metrics, Ethereum’s recent momentum highlights growing investor confidence in its technological evolution and expanding ecosystem.
ETH is currently trading around $2,680, marking a 6% gain over the last day. In comparison, BTC has risen nearly 5%, hovering near $40,424. Despite BTC maintaining stronger weekly and monthly returns, Ethereum’s year-over-year performance tells a compelling story—up approximately 50%, while Bitcoin remains down 28% over the same period.
This surge in ETH’s valuation follows critical progress in Ethereum’s ongoing merge process—the highly anticipated shift from proof-of-work (PoW) to PoS. The milestone was triggered after Ethereum developer Tim Beiko confirmed that Kiln, the latest testnet version of the network, successfully passed essential requirements for the merge.
“The current Ethereum PoW blockchain will merge with the Beacon Chain’s proof-of-stake system during this event,” Beiko stated.
The successful test signaled that Ethereum is moving closer to one of the most significant upgrades in blockchain history—reducing energy consumption by an estimated 99.95% and laying the foundation for future scalability improvements.
However, the test wasn’t without hiccups. Beiko later noted on Twitter that one client failed to consistently produce blocks, disrupting full network synchronization. At the time, about two-thirds of validators were functioning correctly, and the network remained stable.
“Network is stable, ~2/3 of validators doing their job. We’re looking into it,” he added.
Four hours later, developer Marius Van Der Wijden acknowledged the issue, confirming that the team was investigating “some minor bugs.” These technical challenges are expected as part of the rigorous testing phase, underscoring the complexity and importance of ensuring a seamless transition when the mainnet merge eventually occurs.
👉 Discover how Ethereum's shift to proof-of-stake is reshaping the future of decentralized finance.
Ethereum’s On-Chain Activity Signals Strong Fundamentals
Despite short-term price volatility, on-chain data reveals a resilient and active Ethereum ecosystem. According to Santiment, a leading chain analytics firm, there’s a growing bullish divergence between price and network utility.
Over the past four months, Ethereum’s price has dropped by about 35%. Yet, key engagement metrics like daily active addresses (DAA) have remained stable—indicating sustained user interest regardless of market conditions.
“Daily active addresses and price show a bullish divergence. The number of unique interacting addresses on the Ethereum network remains steady,” Santiment reported.
This disconnect between price and usage suggests that Ethereum’s foundational value isn’t weakening. Instead, users continue to interact with decentralized applications (dApps), engage in DeFi protocols, mint NFTs, and participate in DAOs—all built on Ethereum’s infrastructure.
MetaMask’s Explosive Growth Reflects Broader Adoption
Further evidence of Ethereum’s expanding reach comes from ConsenSys, a leading blockchain software company and core contributor to the Ethereum ecosystem. The firm recently announced that its flagship product, MetaMask wallet, now boasts over 30 million monthly active users—a 42% increase in just four months.
MetaMask has become a gateway for global users to access Web3 services. From buying and trading NFTs to staking in DeFi platforms and joining decentralized autonomous organizations (DAOs), MetaMask simplifies user interaction with the Ethereum blockchain.
Joseph Lubin, ConsenSys founder and Ethereum co-creator, emphasized the strategic importance of this growth. He also revealed details about the company’s recent $450 million Series D funding round, which pushed its valuation beyond $7 billion—more than double its 2021 valuation.
Notably, the funding included both fiat and digital assets, with all investments converted into ETH—a strong vote of confidence in Ethereum’s long-term value.
“Our ETH series” will be the next seed round, where investors can contribute ETH as a commitment to this ongoing paradigm shift,” Lubin explained.
This move not only strengthens ConsenSys’ financial position but also reinforces Ethereum’s role as a store of value and foundational layer for next-generation applications.
Solana vs. Ethereum: A Battle for Developer Mindshare
As Ethereum advances toward full scalability with upgrades like sharding and rollups, alternative blockchains like Solana (SOL) are aggressively competing for developer attention and user adoption. However, Lubin remains skeptical about Solana’s long-term sustainability.
He pointed out that Solana offers disproportionately high incentives to validators relative to actual user transactions—a model that may not be economically viable in the long run.
“I hope they can create a more sustainable business model for their network,” Lubin commented.
In contrast, Ethereum’s gradual, security-first approach prioritizes decentralization and resilience over rapid expansion. While slower, this strategy aims to build a robust foundation capable of supporting global-scale applications without compromising on trust or security.
Frequently Asked Questions (FAQ)
Q: What is Ethereum’s merge?
A: The merge refers to Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS). It combines the existing execution layer with the Beacon Chain’s consensus mechanism, drastically reducing energy use and setting the stage for future upgrades.
Q: Why did ETH outperform BTC recently?
A: Positive developments around the merge, strong on-chain activity, and growing adoption through tools like MetaMask have boosted investor sentiment toward Ethereum, leading to short-term outperformance against Bitcoin.
Q: Is Ethereum safer than other blockchains like Solana?
A: Ethereum prioritizes security and decentralization over speed. While newer chains may offer faster transactions, Ethereum’s extensive developer community, rigorous testing, and layered upgrade path make it one of the most secure and trusted smart contract platforms.
Q: How does proof-of-stake affect ETH holders?
A: PoS allows ETH holders to stake their tokens and earn rewards by helping secure the network. This creates new passive income opportunities and increases economic participation in the ecosystem.
Q: What are daily active addresses (DAA), and why do they matter?
A: DAA measures the number of unique addresses interacting with the blockchain daily. Stable or rising DAA during price dips indicates strong underlying demand and user retention.
Q: When will the Ethereum mainnet merge happen?
A: While no official date has been confirmed for 2025, ongoing successful testnet merges like Kiln suggest the mainnet transition could occur in the near future, pending final validation and coordination among developers.
The recent momentum behind Ethereum reflects more than just price action—it signals growing confidence in its roadmap, technology, and real-world utility. As scalability solutions roll out and staking becomes more accessible, Ethereum is positioning itself not just as digital money, but as the backbone of a decentralized internet.