Ethereum Struggles as Price Dips to 2021 Levels Despite Stablecoin Surge

Ethereum (ETH), the second-largest cryptocurrency, is underperforming in the current crypto cycle. Its price has plunged below 0.019 BTC, revisiting the $1,600 range last seen during its 2021 bull run. While most metrics show weakness, Ethereum’s stablecoin activity is a rare bright spot. According to DefiLlama, the total supply of Ethereum-based stablecoins has surged from $22 billion in January 2021 to $123 billion in 2025—a 5.6x increase, signaling persistent demand despite bearish market sentiment.

However, other key Ethereum-related metrics tell a different story. DeFi total value locked (TVL) on Ethereum is nearly unchanged since April 2021, slightly rising from $85 billion to $89 billion. Meanwhile, decentralized exchange (DEX) trading volume currently stands at $7.6 billion, only a modest improvement from $5.7 billion four years ago, and far below the $50 billion peak seen in January 2024.

The price action adds to a broader trend of stagnation. Developer activity, a crucial indicator of ecosystem growth, has plummeted to its lowest level since the 2018 bear market. Crypto analyst Miles Deutscher attributes this decline to a shift in developer interest toward artificial intelligence, declining venture capital funding, and disillusionment with underdelivered blockchain promises. Still, interest remains in blockchain-AI integrations and stablecoin or real-world asset (RWA) projects.

As of April 12, 2025, the total cryptocurrency market cap is up by 0.3%, with Bitcoin (BTC) gaining 1.9% and struggling to hold the $83,600 level. Despite a booming stablecoin sector, Ethereum's sluggish price and weakening DeFi performance paint a cautious picture for investors watching the ETH ecosystem.