Ethereum Underperforming, Dont Blame The Network Or Leadership: Heres Why
Ethereum is the laggard in this bullish cycle. When Bitcoin soared to register fresh all-time highs, easing past $70,000 in March, ETH prices struggled to break $4,000. When it did, the best the coin could do was retest $4,100 before dumping hard.
In the past seven months, after the second most valuable coin registered 2024 highs, it is down nearly 40%. Considering its performance over the past three months, there are concerns that Ethereum could post even more losses. Technically, this may be the case should it fail to breach $3,000 in the coming sessions.
Dont Blame Ethereum Or Its Leaders For ETHs Underperformance
Taking to X, one analyst thinks ETH is trailing Bitcoin, Solana, and even Tron, not because of how the network is designed or its leadership. In his view, the dismal performance over the past seven months concerns the uninformed investors.
Admittedly, after prices peaked in March, Vitalik Buterin and the Ethereum Foundation have been offloading their stash. According to Dune, the foundation has been transferring coins regularly.
On September 6, they moved 1,000 ETH when the coin changed hands at $2,300. Most of these coins were sent to exchanges for liquidation. Although Buterin sells ETH from time to time, the co-founder has been selling meme coins heavily and donating to various charities across the globe.
Usually, whenever a senior executive or foundation sells, it is bearish. However, pointing to the analysts assessment, their actions, including many others centered on network improvement, arent a big concern.
ETH To Be A Better Store Of Value Than Bitcoin For Growth?
The analyst on X thinks ETH is falling because investors lack knowledge about the projects fundamental strengths. Most importantly, the argument is that ETH can be a better store of value than gold. The observer insists that Ethereum and Bitcoin compete, and claiming otherwise is a mistake. Both of these networks want to dominate the market eventually.
So far, Bitcoin is the most valuable. On the other hand, Ethereum is the most active smart contracts platform, offering more versatility and is richer than the first blockchain.
For ETH to grow in strength, it must establish itself as a superior store of value, better than Bitcoin. This will require the network to have strong supply dynamics and a greater focus on finance as a primary use case. Once this happens, ETH will be more attractive not only to investors but also to developers.
For now, Ethereum is growing in strength, looking at ETH net deflation since EIP-1559, looking at UltraSound Money. At the same time, its roll-up ecosystem is booming, scaling the mainnet. Altogether, the coin could benefit in the long-term, pushing valuation higher.
Source: NewsBTC.com
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