Expert Predicts Growth for ETH and SOL in 2025

The Ethereum ecosystem is expected to grow and develop alongside Solana in 2025, despite temporary challenges. This is the view of MN Capital’s Chief Investment Officer, Michaël van de Poppe. 

Is #Ethereum dead?

That’s the prime question.

Trump has been buying mostly into $ETH, institutions are building mostly on $ETH, but the price remains to be flat.

Confidence is getting lost.

My portfolio is mostly dedicated towards the Ethereum ecosystem.

What’s next?… pic.twitter.com/TtM5VICiSn

— Michaël van de Poppe (@CryptoMichNL) January 26, 2025

“Is Ethereum dead? That’s the main question. [Donald] Trump is mostly buying ETH, institutions are primarily building on ETH, but the price remains unchanged. Confidence is waning,” noted the trader.

Throughout January, the price of Ethereum fell by ~7%, despite the rise of many other assets. 

Van de Poppe pointed out the difficulty of watching other ecosystems thrive while one’s own positions do not grow. In his view, most market participants feel the same way.

However, the expert emphasized the importance of strategy and patience:

“Swapping your coins for something from newer ecosystems does not automatically mean higher returns. No, there is a lot of emotional behavior involved, but one must be completely rational when it comes to portfolio decisions.”

In his opinion, 2025 will be positive for both the Solana and Ethereum ecosystems.

The expert believes that one argument for Ethereum’s growth will be low yields and interest rates. High rates are disadvantageous to Donald Trump, as they would increase his payments on government bonds. 

“Lower yields are beneficial for DeFi, and this will benefit Ethereum,” noted the trader.

The Dollar Index will be weaker. Van de Poppe pointed to a +1 correlation between the ETH/BTC pair and the strength of the US currency:

“If the dollar is weak, Ethereum is likely to outperform Bitcoin as interest in this asset grows.”

The expert suggests that under Trump, the world will also see an increase in unrest, prompting people to shift from the traditional financial system to other asset classes, including cryptocurrencies. 

Meanwhile, the regulatory environment for cryptocurrencies is likely to become more favorable. 

“This will essentially help Bitcoin, but its capabilities within the ecosystem are relatively limited. Ethereum’s possibilities are limitless, and much is already being built on the network,” emphasized van de Poppe.

In his view, these fundamental factors are sufficient to speak of positive prospects for the second-largest cryptocurrency by market capitalization. 

The expert added that he does not always have to be right in his assumptions — “correct decisions will eventually cover mistakes with a surplus.”

Additionally, historically, February and March have often been positive periods for Ethereum. 

Throughout the asset’s history, there was only one February in which the price of ETH fell — in 2018, a 24% drop was recorded after a rise of over 200% in the preceding three months. March is almost as favorable a period. 

At the time of writing, ETH is trading at $3050 after a significant drop — the price fell by 8.4% in a day. According to CoinGecko, the coin’s market capitalization is $366.9 billion.

Prior to Trump’s inauguration, the Solana ecosystem experienced the “craziest weekend” in its history.