Galaxy Digital CEO Criticizes Ethereum’s Struggles Amid Regulatory Pressure

Mike Novogratz, the CEO of Galaxy Digital, recently raised concerns about Ethereum's performance, expressing disappointment over its lag behind competitors like Bitcoin and Solana.

Despite being a longstanding advocate for Ethereum, Novogratz acknowledged that ETH has underperformed, attributing this to ongoing regulatory pressures, particularly from the U.S. Securities and Exchange Commission (SEC).

In an interview, Novogratz pointed to former SEC Chairman Gary Gensler’s actions, such as his scrutiny of Ethereum-related projects, including lawsuits against entities like ConsenSys and questions over whether ETH itself could be considered a security. Last year, ConsenSys sued the SEC over its stance on ETH, although the SEC later approved the launch of Ethereum spot ETFs, affecting how investors view the asset.

While Bitcoin and Solana have reached new highs during recent bullish trends, Ethereum has struggled. Novogratz also touched on the shift in Ethereum’s market narrative. He noted that, unlike Bitcoin, Ethereum’s value proposition has evolved, with investors now viewing it more as a store of value and its potential role in Web3 technology driving interest.

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Another challenge Ethereum faces is the uncertainty surrounding the Ethereum Foundation and its leadership. Novogratz acknowledged the “FUD” (fear, uncertainty, and doubt) surrounding Vitalik Buterin and the foundation, stressing the importance of maintaining a strong, research-focused foundation to advocate for Ethereum’s long-term growth.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.