Michael Saylor Says Confidence in Ethereum Has Collapsed

Strategy chairman Michael Saylor has once again questioned Ethereum’s long-term position in the crypto market. According to him, growing competition from networks like Solana, BNB Chain, Sui, Hyperliquid, and various Layer-2 solutions is weakening Ethereum’s value proposition.

Saylor argues that the crypto market is becoming more utility-driven, meaning investors will eventually favor networks that deliver the most real-world use cases rather than relying on reputation alone. 

Saylor Points to Rising Ethereum Competition

He says Ethereum is no longer operating in a market where it has a clear advantage. Competition from networks such as Solana, BNB Chain, Sui, Hyperliquid, and several Layer-2 solutions has intensified, forcing projects to compete more directly for users, liquidity, and developer activity.

“Confidence in Ethereum has collapsed if you’re paying attention. What you see in the rest of the crypto market is there’s a competition between Ethereum, Solana, BNB. For a long time, Sui was the next Solana and then that collapsed and now there’s Hyperliquid. And then there’s competition at the layer 2’s with Arbitrum and Base,” he said. 

According to Saylor, this growing competition has reduced the premium investors once assigned to many smart contract platforms. Rather than benefiting from scarcity or narrative-driven demand, these networks now have to prove their value through adoption and real-world utility.

“All of those things have stripped the monetary premium out of all those crypto tokens. I think they’re not going to have a monetary premium. They’re going to live or die based on utility, and they’re all in a difficult competition,” he said.

He contrasted that situation with Bitcoin, which he says has strengthened its position over the past year as a digital monetary asset while other blockchain ecosystems compete for market share.

“The last 12 months have been really good for the position of Bitcoin as the dominant digital monetary network. They’ve established Bitcoin as digital capital,” he said.

ETH Price Has Been Under Pressure

The timing of Saylor’s comments comes as Ethereum continues to underperform.

ETH recently dropped toward the $1,600 region after breaking below several major support levels. The asset is trading under its 50-day, 100-day, and 200-day moving averages, reflecting continued weakness. At one point, its Relative Strength Index (RSI) also slipped into oversold territory, highlighting the extent of the recent sell-off.