Ethereum experienced a significant surge of nearly 200% in 2025, fueled by leadership changes within its foundation, increased ETF inflows, and growth in decentralized autonomous trusts (DATs). However, a recent Messari report highlights ongoing challenges that could hinder Ethereum's progress in 2026. Key issues include unresolved fee splits and weak base layer activity, which continue to affect its performance. Despite its growth, Ethereum is still largely perceived as a leveraged play on Bitcoin rather than a standalone asset. The future value of Ethereum hinges on its ability to differentiate itself from Bitcoin and gain broader acceptance as a store of value. Addressing these challenges will be crucial for Ethereum to solidify its position in the cryptocurrency market.