Bitcoin News

Ethereum in ‘Doldrums’ As Bitcoin and Solana Outperform ETH, Says Bitwise CIO Matt Hougan – Here’s Why

Ethereum in ‘Doldrums’ As Bitcoin and Solana Outperform ETH, Says Bitwise CIO Matt Hougan – Here’s Why

The chief investment officer of crypto asset management firm Bitwise says that Ethereum (ETH) appears to be in a period of stagnation after being outpaced by both Bitcoin (BTC) and Solana (SOL).

In a new blog post, Bitwise executive Matt Hougan says that Ethereum is experiencing doldrums due to competitors with superior technology, the risks associated with the upcoming election, shifting volume, and a slow start to the launch of ETH-based exchange-traded fund (ETF), causing it be outperformed by SOL and BTC.

“The ETH/BTC ratio – a comparison of the price of Ethereum versus the price of Bitcoin – recently hit its lowest level in three years. On a year-to-date basis Ethereum is flat while Bitcoin is up 38%, and Ethereum’s top competitor, Solana, is up 31%.”

Hougan says that if Kamala Harris were to be elected as president and continues the Biden Administration’s harsh treatment of digital assets, the leading smart contract platform could be in trouble.

He goes on to say that ETH is also facing technological challenges from newer, younger blockchains, such as Solana, which provide faster throughput and lower transaction fees. According to Hougan, it’s currently trendy in the crypto world to be bullish on Solana and bearish on ETH.

The executive then says that another issue with Ethereum is volume shifting from it to layer-2 scaling solutions built on top of it.

“The rise of Layer-2s has shifted so much volume away from Ethereum that its revenues are down to a four-year low. Many wonder if Ethereum has shot itself in the foot by scaling away from the foundational Layer-1 blockchain.”

However, despite listing the leading smart contract platform’s potential flaws, Hougan says that none of ETH’s problems appear “existential.”

“Ethereum has the most active developers, the most active users, and a market cap that is 5x bigger than its closest competitor. It’s the only programmable blockchain that has a modicum of regulatory support in the U.S., with a booming regulated futures market and a multi-billion-dollar ETF market…

From my seat, none of Ethereum’s challenges seem existential, and its opportunities are brimming. I suspect the market may reevaluate Ethereum as we get closer to the November elections and any regulatory clarity that emerges. For now, it looks like a potential contrarian bet through the end of the year.”

Ethereum is trading for $2,302 at time of writing, a 3.4% decrease during the last 24…

Click Here to Read the Full Original Article at Bitcoin News – The Daily Hodl…