Cardano founder Charles Hoskinson has once again warned that Ethereum may not survive the next decade. In his latest interview, Hoskinson reemphasized earlier remarks he made this year, saying the network’s reliance on external solutions and structural flaws could shorten its lifespan.
Hoskinson argued that Ethereum’s core protocol, known as Layer-1, has failed to scale on its own. Instead, the network relies on Layer-2 systems such as rollups and sidechains to handle transactions. While these improve speed, he said they are “partners of necessity, not loyalty.” If better opportunities arise, Layer-2s could shift to other blockchains or operate independently, taking users and liquidity away from Ethereum.
This, he explained, puts Ethereum in a fragile position. New applications and liquidity are already being built outside its ecosystem, reducing its dominance as the home for smart contracts. Hoskinson stressed that this trend aligns with his long-standing view that Ethereum’s model is unsustainable.
Hoskinson also warned that Bitcoin’s DeFi ecosystem could grow large enough to eclipse Ethereum. He predicted that once it matures, Bitcoin’s total value locked could reach hundreds of billions of dollars — larger than Ethereum’s market cap. Institutional players like BlackRock, he argued, are more likely to prefer Bitcoin for long-term liquidity.
However, recent market data shows a different trend. According to institutional portfolio disclosures, Ethereum buying has outpaced Bitcoin in recent months. BlackRock and Fidelity reported larger inflows into their Ethereum-based funds than into their Bitcoin equivalents. Analysts point to staking rewards, DeFi utility, and regulatory clarity as reasons why Ethereum now represents a bigger share of institutional crypto exposure than Bitcoin.
At the same time, new technologies such as zero-knowledge proofs and proof-carrying code could allow secure computations to happen off-chain. If that becomes mainstream, Hoskinson said, Ethereum’s shared virtual machine will lose its purpose, and users will no longer pay billions in annual fees to maintain it.
He also pointed to competition from big technology firms. Companies like Microsoft, Google, and Amazon are developing blockchain systems and could integrate wallets into platforms like Android or Windows. With billions of existing users, these firms could bypass Ethereum entirely and dominate the flow of liquidity.
Hoskinson criticized Ethereum’s lack of formal on-chain governance, saying it struggles to adapt quickly when challenges arise. By contrast, Cardano (ADA) uses a governance system that allows millions of users to vote on protocol decisions and manage funding.
To illustrate the risks, he compared Ethereum to Microsoft Windows, which lost its dominance when mobile platforms grew, and Yahoo, which collapsed when Google changed the search model. Ethereum, he warned, could face a similar “paradigm shift” that leaves it behind.
“Ethereum is a victim of its own success,” Hoskinson said, adding that unless it reinvents itself, its position in the smart contract space may not last more than a decade.
