Ethereum News: Is ETH Price No Longer the Core? Why Fundamentals Will Determine True Value in 2026

As Layer-1 public blockchains continue to release their 2026 roadmaps, the crypto market is experiencing a significant shift in perception. In 2025, Ethereum (ETH)'s price performance diverged noticeably from its network fundamentals, and frequent market fluctuations instead reinforced a long-term conclusion: in the later stages of a cycle, fundamentals tend to be more important than short-term prices.

Against this backdrop, Ethereum founder Vitalik Buterin once again emphasized the importance of “decentralization” and real-world applications, positioning them as the core focus of Ethereum’s development in 2026. The effectiveness of this strategy is now a focal point for investors and developers.

From a fundamental data perspective, 2025 was an exceptionally strong year for Ethereum’s operational performance. On-chain transaction volume hit a record high, the network completed multiple key upgrades, DeFi market share remained above 50% for the long term, and the total value of tokenized real-world assets (RWA) grew by as much as 212% year-over-year. These indicators suggest that Ethereum remains the core infrastructure for smart contracts and financial applications.

However, growth has come at a cost. As Layer-2 networks expand, mainnet gas fees have continued to decline. Growthpie data shows that L2-related revenue decreased by 53% year-over-year, resulting in Ethereum losing nearly $100 million in revenue. This has raised concerns in the market about its long-term revenue model: if transaction fees continue to be compressed, can Ethereum still support its extensive technical roadmap?

Regarding this issue, market opinions have become divided. Short-term investors are disappointed with ETH’s approximately 11% annual return loss in 2025, with more capital choosing to stay on the sidelines, weakening short-term speculative momentum. But from a long-term perspective, low costs and high throughput are attracting more institutions and applications. For example, JPMorgan’s push for asset tokenization on Ethereum is a practical endorsement of its infrastructure capabilities.

It is worth noting that ETH’s exchange reserves decreased by about 20% by the end of 2025, down to 16.6 million tokens, reflecting investors’ preference for long-term holding over frequent trading. This change indicates that the market is shifting from price speculation to value assessment.

Looking ahead to 2026, as decentralization advances further and real-world applications continue to expand, Ethereum’s fundamentals may be more meaningful than ETH’s price itself. Short-term volatility may still exist, but the long-term anchor of value will be jointly determined by network usage, ecosystem depth, and institutional participation.