Since the beginning of 2024, Ethereum (ETH), the second largest cryptocurrency, has shown weak results against Bitcoin. This article explores the main reasons affecting the price of ETH and future forecasts.
Ethereum's Weak Results Since the Beginning of the Year
According to Coindesk, the price of Ethereum has remained almost unchanged since the beginning of the year, while Bitcoin (BTC) has increased by 38% and Solana (SOL) by 31%. Bitwise's Chief Investment Officer Matt Hougan noted that no one is satisfied with Ethereum’s current performance.
Key Risks for Ethereum
Hougan explains Ethereum’s weak performance due to several factors, including: - Risks related to the US presidential election in November. - Increasing competition with Solana and other blockchains. - The struggling token economy. - The failure of spot ETH ETFs in the US to meet expectations.
Ethereum's Strengths
Despite the current difficulties, Hougan asserts that Ethereum's fundamentals remain strong. Over 60% of all DeFi assets are locked on the ETH network, and the popular prediction market Polymarket is also based on ETH. According to Hougan, the current challenges are not fundamental and may change as the US elections approach.
Ethereum remains one of the leading blockchains despite current difficulties and competition. A possible change in the situation towards the end of the year with the US presidential elections may be a catalyst for ETH price growth.
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