Ethereum may still be the second-largest cryptocurrency network in the industry, but the ecosystem is facing an identity crisis, according to Haseeb Qureshi, managing partner at Dragonfly Capital.
Speaking on the Milk Road podcast, Qureshi likened Ethereum to the “Microsoft of cryptocurrencies.” Ethereum is large, enterprise-oriented, and very important, but it is no longer considered the fastest-moving innovation hub on the market.
“Ethereum is very big, very slow, very enterprise-oriented, and doesn’t have the best UX. It’s not the first time we’re innovating something at this point, but it’s very important and irreplaceable and worth a lot of money,” he said.
Why Ethereum is losing momentum
This discussion comes after multiple exits from the Ethereum Foundation and renewed discussions about Ethereum’s long-term direction.
Qureshi claimed that Vitalik Buterin’s recent comments were bearish for ETH, emphasizing that the Ethereum Foundation does not want to become a “numbers” organization focused on price, aggressive expansion, and commercialization.
Instead, Vitalik continues to prioritize decentralization, resistance to censorship, security, and reliable neutrality.
According to Qureshi, this leaves Ethereum without a strong organization focused purely on adoption and ecosystem growth.
Second Ethereum Foundation Case
“It’s almost a second foundation that Vitalik is quietly calling out to,” Qureshi explained.
He said that Ethereum may now need a separate organization fully dedicated to business development, institutional adoption, marketing, partnerships, and helping Ethereum compete commercially.
Qureshi cited the Solana Foundation as an example of how active ecosystem support accelerates adoption.
He noted that much of Solana’s growth is due to the foundation’s focus on entrepreneurship, commercialization, partnerships, and ecosystem expansion.
Meanwhile, Ethereum’s leadership appears to be increasingly focused on protocol management and long-term research rather than competitive market growth.
Ethereum is still too big to ignore
Despite the criticism, Qureshi emphasized that Ethereum remains one of the largest and most important crypto assets.
He emphasized that the network’s valuation is still around $270 billion, which is still more than the combined value of most public crypto companies other than stablecoin issuers.
“Ethereum is worth more than 20 HyperLiquids,” he said.
For Qureshi, Ethereum’s next big resurgence may depend on whether the Ethereum Foundation continues to protect the network’s core values, while a new organization finally emerges that is entirely focused on adoption, commercialization, and helping Ethereum “win.”
