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Ethereum is lagging behind in this bull cycle. When Bitcoin surged to record new all-time highs, surpassing $70,000 in March, ETH prices struggled to break above $4,000. When this happened, the best the coin could do was retest $4,100 before breaking down sharply.
Over the past seven months, after the second most valuable coin posted 2024 highs, it has fallen almost 40%. Given its performance over the past three months, there are concerns that Ethereum could record even more losses. Technically, this could be the case if it fails to surpass $3,000 in the coming sessions.
Don’t Blame Ethereum or Its Executives for ETH’s Underperformance
Taking X, an analyst think ETH lags behind Bitcoin, Solana, and even Tron, not because of network design or leadership. According to him, the poor performance of the last seven months worries “ill-informed” investors.
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True, after the price peak in March, Vitalik Buterin and the Ethereum Foundation got rid of their reserves. According to Dune, the foundation was transfer parts 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 sells a lot of coins and donates to various charities around the world.
Usually, any time an executive or foundation sells, it’s bearish. However, in the analyst’s assessment, their actions, including many others focused on improving the network, are not a big concern.
Will ETH be a better store of value than Bitcoin for growth?
X’s analyst believes ETH is falling because investors lack knowledge about the project’s fundamental strengths. More importantly, the argument is that ETH may be a better store of value than gold. The observer insists that Ethereum and Bitcoin are in competition, and to claim otherwise is wrong. These two networks ultimately want to dominate the market.
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So far, Bitcoin is the most valuable. On the other hand, Ethereum is the most active smart contract platform, offering more versatility and being “richer” than the first blockchain.
For ETH to grow stronger, 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 emphasis 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 getting stronger, looking at the net deflation of ETH since EIP-1559, looking Ultrasonic silver. At the same time, its roll-up ecosystem is booming, evolving the mainnet. Overall, the coin could benefit in the long run, pushing up the valuation.
Featured image of DALLE, chart by TradingView
