Ethereum (ETH), the largest altcoin by market capitalization, has seen a more modest rise compared to Bitcoin and other cryptocurrencies this year.
While Bitcoin has surged by 109%, Ethereum has only managed a 36% increase, trailing significantly behind its counterpart.
Experts remain cautious about Ethereum’s prospects. Despite its year-to-date gains, there’s little expectation that ETH will reach $4,000 by the end of December. According to recent research from Amberdata, Ethereum has just a 10% probability of surpassing its Q1 high of $4,000.
In contrast, many investors are optimistic about Bitcoin’s potential to hit new heights above $100,000, with much less enthusiasm for Ethereum’s future.
Greg Magadini, Director of Derivatives at Amberdata, attributes Ethereum’s lackluster performance to weak fundamentals.
He notes that Ethereum’s value proposition, based on its deflationary supply mechanism via fee burns, is being undermined as the majority of decentralized finance (DeFi) transactions now occur on Ethereum layer-2 solutions. This shift, he believes, has significantly impacted the price of ETH, contributing to its current stagnation.
Coinbase has recently added the Doginme (DOGINME) memecoin to its asset roadmap, hinting at a possible future listing on the exchange.
Crypto analyst Benjamin Cowen believes Ethereum (ETH) faces a period of hardship before it can recover.
Solana’s latest governance votes have reshaped the network’s economic model, with mixed results for SOL holders.
Institutional demand for XRP ETFs is rising, with BlackRock expected to file soon, following Franklin Templeton’s recent application.