Ethereum Underperforming, Don’t Blame The Network Or Leadership: Here’s Why
26 Outubro 2024 - 2:30AM
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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. Don’t Blame Ethereum Or Its Leaders
For ETH’s 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. Related Reading: Is The Cat Season Here? MEW Hits $1
Billion Market Cap After New ATH 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 analyst’s assessment, their actions,
including many others centered on network improvement, aren’t 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 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. Related Reading:
Dogecoin Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says
About Rally 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. Feature image from DALLE, chart from TradingView
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