As Ethereum grapples with significant scalability and governance challenges, several blockchain platforms, including Cardano’s key competitors, are gaining momentum. Ethereum’s ongoing network limitations may lead to its decline by 2040, according to Charles Hoskinson, the founder of Cardano.
Hoskinson, who was one of Ethereum’s original co-founders, recently expressed concerns in a CNBC interview that Ethereum’s reliance on layer-2 solutions, issues around decentralization, and fragmentation of its ecosystem could eventually undermine its long-term viability. “Without fundamental reform, Ethereum risks disintegration by 2040,” Hoskinson warned, referencing ongoing market concerns about the Ethereum network’s future.
Despite recent efforts like the Dencun update aimed at improving scalability, Ethereum still faces bottlenecks in transaction costs and throughput. These persistent issues have created opportunities for Cardano’s rivals, including Avalanche, Solana, Polkadot, NEAR Protocol, and Algorand, to seize market share.
Rising Competitors:
Several competitors are positioning themselves to capitalize on Ethereum’s struggles:
Avalanche (AVAX): Currently priced at $22.43, up 12% in the past week, Avalanche boasts high transaction throughput and customizable subnets, positioning it as a scalable smart-contract platform. The platform also gained attention in April 2025 with VanEck’s spot ETF filing, which is under SEC review.
Solana (SOL): Trading at $149.23, a 6.9% weekly increase, Solana continues to attract interest with its fast transaction speed and growing decentralized finance (DeFi) ecosystem. In addition, ETF applications from Franklin Templeton, Grayscale, and VanEck are under SEC evaluation, with decisions expected by October 2025.
Polkadot (DOT): Priced at $4.27, up 10% this week, Polkadot’s interoperability and scalability features continue to draw institutional interest. Nasdaq’s application to list a Polkadot ETF, pending SEC approval, adds to its growing credibility.
NEAR Protocol (NEAR): NEAR Protocol, currently at $2.64 (up 21% in the past week), has seen strong institutional demand. Bitwise’s ETF filing for NEAR in April 2025 signals further institutional backing for the platform.
Algorand (ALGO): Algorand’s price has increased by 18.8%, reaching $0.2287, as it expands its European presence with ETP listings across exchanges. While it has not yet filed for a U.S. ETF, its international growth suggests promising prospects.
Ethereum’s Challenges:
Hoskinson’s forecast underscores growing skepticism regarding Ethereum’s future. Despite changes at the Ethereum Foundation in March 2025, key technical concerns remain unresolved. The Ethereum network’s ability to scale, govern, and maintain decentralization is increasingly under scrutiny as newer platforms gain ground.
As regulatory clarity improves and blockchain technology evolves, Ethereum’s competitors are well-positioned to meet market demands, potentially driving them to capture a larger share of the crypto market.
Conclusion:
The rise of platforms like Avalanche, Solana, Polkadot, NEAR, and Algorand reflects growing market confidence in alternatives to Ethereum. With Ethereum’s future uncertain, these competitors are emerging as key players to watch, offering scalable, decentralized solutions that could reshape the blockchain landscape in the coming years.
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