While Bitcoin reaches new records, Ethereum shows some lagging. This article explores current market trends and analysts' opinions on Ethereum's future.
Current Market Situation
Bitcoin has set a new record by surpassing the $97,000 mark. Ethereum, however, hasn't shown such impressive results. Its ETH/BTC ratio dropped to the lowest level since March 2021, reaching 0.032 before recovering to 0.34 with the rise in ETH.
Experts' Opinions on Ethereum's Lag
Analyst Steven Zheng notes that Ethereum is facing competition on two fronts: as a store of value against Bitcoin and as a smart contract platform against Solana. This creates uncertainty for investors about ETH's value proposition. Solana stands out due to multiple tokens launched on its platform. BTCMarkets analyst Rachael Lucas attributes ETH's lackluster performance to attempts to classify it as a security in the US.
Potential Prospects for Ethereum
Peter Chung, head of research at Presto Research, believes that Ethereum's weak performance does not signify long-term issues. He expects that, with more crypto-friendly conditions under Trump's administration, the Ethereum ecosystem will grow through Web3 projects. Choosing other networks over Ethereum today would be premature, Chung adds.
Ethereum continues its struggle to improve its market position. Despite short-term challenges, experts believe that Web3 projects and investment in intellectual capital may boost its recovery in the future.
