Ethereum’s decentralized application (DApp) activity is poised to outshine its 2024 benchmarks as the blockchain remains integral to the decentralized finance (DeFi) and non-fungible token (NFT) sectors. This momentum, observed as of July 2025, signals a potentially sustainable trend, according to DappRadar analyst Sara Gherghelas.
Ethereum’s Continued Dominance
Ethereum, the second-largest cryptocurrency network by market capitalization, has long been a powerhouse in the blockchain space. Its unique ability to support complex smart contracts and a diverse ecosystem of applications makes it a linchpin in the world of DeFi and NFTs. “Ethereum’s role in DeFi and NFTs is not just foundational; it’s transformative,” Gherghelas noted. “The growth we’re seeing this year suggests that its relevance is not a flash in the pan.”
This year, Ethereum’s activity levels have been bolstered by several factors. The network’s transition to Ethereum 2.0, marked by ‘The Merge’ in 2022, laid the groundwork for improved scalability and reduced energy consumption. Now, in 2025, this upgrade continues to pay dividends, attracting developers and users alike. Additionally, the rise of layer-2 solutions like Arbitrum and Optimism has further alleviated congestion, facilitating more seamless transactions. As explored in our recent coverage of Ethereum Wallet MetaMask’s integration with DeFi giant Aave, such developments are enhancing user engagement within the Ethereum ecosystem.
DeFi and NFTs: A Symbiotic Relationship
Ethereum’s ecosystem is a bustling marketplace of ideas where DeFi and NFTs are thriving. DeFi platforms such as Aave and Compound offer decentralized lending and borrowing, providing users with financial autonomy that traditional banks can’t match. Meanwhile, NFT marketplaces like OpenSea continue to capture the zeitgeist, transforming digital art and collectibles into a multi-billion-dollar industry.
“The symbiosis between DeFi and NFTs is fascinating,” said blockchain expert and investor, Jamie Wu. “NFTs bring new users to the blockchain, who then explore DeFi services, creating a virtuous cycle of growth.” Wu points out that the integration of NFTs into DeFi protocols—such as using NFTs as collateral—is an evolving trend, further intertwining these two domains.
The Road Ahead: Challenges and Opportunities
While Ethereum’s current trajectory is promising, it’s not without its hurdles. Scalability remains a perennial challenge, even with layer-2 solutions in play. Gas fees, although lower than in previous years, can still fluctuate wildly, affecting user experience and transaction costs. Moreover, competition from other blockchains like Binance Smart Chain and Solana is intensifying, as they vie for a share of the DeFi and NFT markets. This follows a pattern of increasing crypto inflows, as detailed in our analysis of Ethereum’s outperformance in an altcoin-led rally.
Yet, Ethereum developers are not resting on their laurels. The upcoming implementation of sharding, expected to further enhance network capacity, is eagerly anticipated. This development could potentially solve many of the scalability issues that have plagued Ethereum in the past. “If sharding delivers as promised, Ethereum’s dominance could be cemented for years to come,” Gherghelas added with cautious optimism.
As we look to the future, questions linger about whether Ethereum can maintain its momentum amid a rapidly evolving crypto landscape. The network’s adaptability and the ingenuity of its community will be tested as they navigate the complexities of a competitive market. Nevertheless, with its robust infrastructure and pioneering spirit, Ethereum appears well-positioned to remain at the forefront of blockchain innovation.
Source
This article is based on: Ethereum activity may top 2024 as it stays key to DeFi, NFTs: DappRadar
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
