Kevin O’Leary says Ethereum “cracks under pressure” from high gas fees, but users argue the network is improving steadily.
Ethereum is back in the spotlight once again, after investor and television personality Kevin O’Leary said the network “cracks under pressure.”
He compared the blockchain’s high gas fees to “paying a thousand-dollar toll to drive on a one-lane highway.” His remarks came as Ethereum’s price hovered around $3,870, slipping nearly 4% in 24 hours amid a wider market correction.
Kevin is not wrong. Ethereum wont make it. Been narrating this since October 2022. Not only is the network architected poorly, the public internet cannot handle the load. They missed the ball by not re architecting earlier and building a private physical network to scale. Solana… https://t.co/ZUcqrMQJoK
— MartyParty (@martypartymusic) October 16, 2025
The Ethereum “Cracks” Debate
Ethereum’s scalability has been one of the biggest arguments in the crypto space. O’Leary’s comments have reignited that debate, but many argue that he oversimplified how the network works.
Ethereum community member Adriano Feria responded that Ethereum’s main chain, known as Layer 1, is not designed for everyday retail use. Instead, it acts as a secure settlement layer for Defi, smart contracts and large-scale transactions.
“Criticising Ethereum’s gas fees is like complaining aeroplane wheels are too small,” Feria wrote on social media. “It misses the point of what the network is meant to do.”
This difference is important because Ethereum’s Layer-2 scaling solutions like Arbitrum, Optimism, and Base handle smaller and faster transactions at a fraction of the cost.
O’Leary’s Focus on Bitcoin and Ethereum
Despite his criticism of Ethereum’s fees, Kevin O’Leary says that he is invested in both Bitcoin and Ethereum. He believes the two assets make up roughly 90% of the exposure he wants in crypto.
He also distanced himself from altcoins, saying he doesn’t see them as worthwhile investments at this stage.
Meanwhile, technical indicators like the RSI are signalling that Ethereum might have an uphill battle ahead of it.
The market is currently struggling to recover from its most recent slump, and analysts are warning that if the bears gain any more ground, Ethereum could fall toward $2,500.
A slump like this would represent a 30% drop from current levels. However, the support near $3,500 is currently helping to cushion the decline.
Crypto traders are watching these levels. Many believe that Ethereum’s fundamental strength and its role defi/staking will keep it relevant even as prices fluctuate.
ETH’s Long-Term Outlook Remains Strong
Despite worries about congestion and transaction costs, Ethereum continues to hold dominance in Defi and Web3 development. It hosts most of the top DeFi platforms, NFT marketplaces and tokenised asset systems.
The Ethereum Foundation and developers are actively working on future upgrades to improve the asset’s scalability. Efforts like Danksharding and rollup integration are being implemented to reduce costs and enhance efficiency without compromising decentralization.
Meanwhile, institutional participation through ETFs and staking services is still going strong despite minor pullbacks. These factors indicate that Ethereum’s structural health is intact, even as critics question its design.
What Comes Next for ETH
O’Leary’s warning about ETH “cracking” might have been exaggerated. However, it has created a much-needed discussion about scalability and user experience.
While gas fees can be painful during heavy traffic, most developers agree that Ethereum’s architecture is heading in the right direction.
The network continues to serve as the foundation for Dapps and smart contract innovation. Even as rival chains compete for market share, Ethereum’s first-mover advantage and developer ecosystem are sure to give it some staying power.
