Galaxy Digital founder and CEO Mike Novogratz has expressed concern about Ethereum's current standing, noting its lag behind competitors as 'incredibly bearish.'
Novogratz's Concerns About Ethereum
Despite being a long-term supporter of Ethereum, Novogratz noted that the cryptocurrency has underperformed compared to its rivals. In a recent interview, he mentioned this factor as having a negative impact on the market.
Regulatory Pressure and Its Impact
Novogratz explained that actions by former SEC Chairman Gary Gensler against Ethereum-related entities have had a significant impact. He stated: 'I think the biggest reason it underperformed is because Gensler loaded up on ETH, sued Consensys, questioned whether it was a security.' In April, Consensys filed a lawsuit against the SEC over their classification of ETH as a security.
Ethereum's Future in the Web3 Context
Novogratz also discussed the evolving investment trend for Ethereum. Unlike Bitcoin, which attracts more attention due to high-profile endorsements, Ethereum's investment strategy might be shifting. 'Right now, most of Ethereum's market cap is a store of value, but what's bringing people there is a trend to Web3,' he emphasized.
Despite doubts and challenges, Ethereum remains a key player in the cryptocurrency market. However, overcoming internal and external difficulties is essential for steady growth.
