Ethereum, the one time champion of decentralized finance, is learning a harsh lesson about the real world. Its market share is shrinking, and competition is pouring in. For millions of Americans, the dream of a truly democratized financial system is growing further out of reach. While analysts dissect technical charts and point to bearish flags, I see something far more profound: a growing chasm between Ethereum's potential and its actual impact on the world. This isn’t only a tale of price decreases, rather it’s a story of missed opportunities and neglected voices.

Blockchain's Promise: For Whom Exactly?

We were promised a revolution. Dream of a world where no one is excluded from finance. In this utopia, intermediaries disappear altogether and people actually own their assets. Ethereum, and its underlying architecture of smart contracts and decentralized applications (dApps), was meant to be at the forefront. Honestly, who truly wins with the status quo on Ethereum?

The high gas fees – the cost of executing transactions on the Ethereum network – have become a notorious barrier to entry. Take, for example, the prospective borrower on a DeFi lending platform—say a small business owner in Nairobi. The value of the loan can be as low as a few hundred dollars. If the gas fees are going to eat up a large chunk of it, that renders the entire effort pointless. This isn’t democratization, it’s digital feudalism—where only the rich are able to engage.

Think about building the most stunning library full of priceless information. Now imagine adding high entrance fees on top of that, excluding the very people who could benefit the most. What good is the library then?

The figures speak for themselves. Ethereum leads the way on Total Value Locked (TVL) with 51.7% of the market. Still, that’s a dramatic decline from the 61.2% it hit just a few months ago. In contrast, Solana is laser-focused on reducing transaction costs. Consequently, its total value locked (TVL) dominance has increased by a blistering 172% over this span. Users are voting with their feet (and their crypto wallets), looking for platforms that are real and usable and cost-effective.

Speculation Over Real-World Solutions?

The craze for speculative assets and financial instruments that Ethereum has been a huge driver of has only made this worse. The ecosystem has moved too far in the direction of not addressing real-world problems. Today, it’s a casino for whales and early adopters, each vying for the next great yield.

Think about it. How many DeFi protocols are focused on solving real-world problems such as increasing financial inclusion, improving access to healthcare, or fighting climate change? How many of those are just doubling-down on allowing the rich to get richer and making it easier for them to do so?

The current trajectory of Ethereum reflects the same inequities it had set out to destroy. Early investors, and those with the biggest wallets are cashing in. In the meantime, everyone else sits on the sidelines as ETH’s price goes up or down with every bit of speculation and hype. This produces a toxic, exclusionary system, one that rewards insiders and punishes outsiders.

Imagine a boisterous gaggle of kids at a game of musical chairs. What’s different in this round is that some of the kids start with two chairs, which creates an interesting dynamic! That’s our view anyway, but who do you think will be left standing when the music stops.

This is not to claim that speculation is bad or evil in and of itself. When innovation is the be all and end all, that warps priorities. It misallocates resources from projects that would make a real difference in the lives of ordinary people.

Inclusivity Now! How Do We Fix This?

The Ethereum community is due for a rigorous come-to-Jesus moment. We need to move away from realizing short-term returns and towards long-term sustainability, equity, and inclusivity. We should remember that technology, including blockchain, can empower individuals and communities. It can come close, especially for the people who are most marginalized. It's time to build bridges, not walls. It's time to amplify forgotten voices.

Ethereum's recent struggles, reflected in declining market share and TVL, aren't just a blip on the radar. They're a symptom of a deeper problem: a failure to prioritize inclusivity and equity. It's not too late to course-correct. Let’s follow the lead of blockchain innovators and embrace a more inclusive, holistic approach to blockchain innovation. Together, we can help realize Ethereum’s full potential and create a financial ecosystem that works for all of us—not just a privileged few. Together, let’s take the opportunity to build a future where blockchain empowers the many and not just the few.

  • Prioritize Layer-2 Solutions: Lowering gas fees is paramount. Layer-2 scaling solutions like Polygon, Optimism, and Arbitrum offer a viable path forward. We need to actively support and promote these solutions to make Ethereum accessible to everyone.
  • Invest in Digital Literacy Programs: Many people, especially in developing countries, lack the knowledge and skills needed to navigate the world of blockchain. Creating educational programs and initiatives that promote digital literacy is crucial.
  • Support Impactful Projects: We need to actively support projects that are addressing real-world problems in developing countries. This could include initiatives that provide access to microfinance, enable cross-border remittances, or promote sustainable agriculture.
  • Advocate for Equitable Policies: We need to advocate for policies that promote equitable access to blockchain technology. This could include tax incentives for projects that focus on social impact, or regulations that prevent predatory lending practices in the DeFi space.

Ethereum's recent struggles, reflected in declining market share and TVL, aren't just a blip on the radar. They're a symptom of a deeper problem: a failure to prioritize inclusivity and equity. But it's not too late to course-correct. By embracing a more inclusive approach to blockchain innovation, we can unlock the true potential of Ethereum and create a financial system that benefits everyone, not just a select few. Let's build a future where blockchain empowers, not excludes.