ilmscore | Biggest Risks To Ethereum In 2025 - ETH Holders Beware!

Biggest Risks To Ethereum In 2025 - ETH Holders Beware!

Published: 2025-08-26
Status: Available | Analyzed

Predictions from this Video

Total: 10
Correct: 0
Incorrect: 0
Pending: 10
Unrated: 0
Prediction
Topic
Status
Ethereum may lose value proposition as applications and services migrate to Layer 2s, faster Layer 1s, and issuer-owned EVM rails.
"If everything that was originally designed for Ethereum keeps migrating to layer 2's, faster layer 1's, and issuerowned EVM rails, Ethereum ends up doing the heavy lifting while capturing less of the value or even being cut out entirely."
ETH
Pending
Future US elections could lead to a shift towards a more hostile regulatory environment for Ethereum, potentially forcing it to implement stricter measures like KYC checks or undergo controversial protocol changes.
"future elections could change that and this could eventually leave Ethereum with two tough outcomes. Either it can accept hard edges like more KYC checks and geo fenced apps or debate major protocol changes that would likely be met with backlash from crypto users."
ETH
Pending
Regulatory constraints on Ethereum could diminish its value proposition over time, even if it remains a neutral settlement layer.
"Ethereum could remain a neutral settlement layer, but it could lose more of its value proposition with every additional piece of regulatory constraints that's put into law."
ETH
Pending
Approval of staking for Ethereum ETFs will likely lead to institutions running a significant number of validators, potentially concentrating block production power in the hands of entities Ethereum was designed to oppose.
"If more likely when staking is approved for these ETFs, it won't be long before institutions like Black Rockck are running a lot of validators on Ethereum. And this will further put block production in the hands of the exact firms that Ethereum was designed to challenge."
ETH
Pending
The introduction of ETF staking is expected to lead to further centralization of Ethereum's validator set due to operational convenience and liability management.
"Once ETF staking turns on, operational convenience and liability management push industry players to keep things very close to home and that is more centralization begets further centralization."
ETH
Pending
Decisions regarding transaction inclusion and upgrade preferences on Ethereum may increasingly reflect the interests of large institutions rather than the broader community.
"The net effect here could be that decisions about transaction inclusion norms and upgrade preferences start reflecting the will of institutions, not the global mix of players Ethereum grew up with."
ETH
Pending
A disorderly unwinding of digital asset treasury company positions in ETH could lead to a rapid and significant price decrease, potentially occurring within weeks or days due to forced selling triggered by macro downturns or treasury blowups.
"The impact of a disorderly unwind would be well nasty. So when it comes to the price impact, this is one risk that has potential to torch ETH in weeks or even days. A macro draw down leading to a couple of smaller treasury blowups would be enough to trigger a massive wave of forced selling."
ETH
Pending
Technical failures in Ethereum could lead to a rapid price decline, overwhelming exchanges with a rush of selling.
"Technical tail risks send prices down at such a pace that exchanges will have a trouble keeping up with the rush of selling."
ETH
Pending
During a bear market, instability in Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (RLTs) could trigger cascading liquidations and amplify market stress due to thin liquidity, redemption issues, and price feed lags.
"In a real bare trend, LST and or RLTD pegs and thin liquidity could trigger liquidation loops. Exit and redemption cues and lag in price feeds could even end up amplifying market stress pretty quickly. Localized shocks spread marketwide."
ETH
Pending
The trend of stablecoin issuers launching their own chains is likely to lead to a shift away from Ethereum.
"Given the circumstances, this seems likely to change, especially with stable coin issuers launching their own chains."
ETH
Pending