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Don’t Blame Ethereum or Its Leaders for ETH’s Underperformance
Ethereum is the Laggard in this Bullish Cycle
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, Ethereum is Down Nearly 40%
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.
Ethereum Price Trending Sideways on the Daily Chart
Don’t Blame the Uninformed Investors for ETH’s Underperformance
Taking to X, one analyst thinks that 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.
Ethereum Foundation Has Been Offloading Their Stash Regularly
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.
Ethereum Price 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 project’s 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.
Competing Stores of Value
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.
ETH Deflationary Dynamics
ETH deflationary | Source: UltraSound Money
Conclusion
In conclusion, Ethereum’s underperformance can be attributed to various factors, including uninformed investors and the Ethereum Foundation’s offloading of their stash. However, the real question is whether ETH can be a better store of value than Bitcoin for growth. According to the analyst, it is essential for the network to have strong supply dynamics and a greater focus on finance as a primary use case. With ETH’s deflationary dynamics and roll-up ecosystem booming, the coin could benefit in the long-term, pushing valuation higher.
FAQs
Q: What is the current status of Ethereum?
A: Ethereum is down nearly 40% in the past seven months.
Q: Why is Ethereum underperforming?
A: Ethereum underperformance can be attributed to uninformed investors and the Ethereum Foundation’s offloading of their stash.
Q: Can Ethereum become a better store of value than Bitcoin?
A: According to the analyst, Ethereum can establish itself as a superior store of value, better than Bitcoin, by having strong supply dynamics and a greater focus on finance as a primary use case.
Q: What is the current trend of Ethereum’s price?
A: Ethereum’s price is trending sideways on the daily chart.
