Cryptocurrency analyst Michaël van de Poppe recently addressed Ethereum's underperformance, especially in light of Solana's impressive performance surpassing $100. The analyst posed the question: “Is Ethereum dead or will it outperform Bitcoin?”
In recent weeks, ETH has been underperforming against Bitcoin, a trend that van de Poppe describes as “organic and natural price movement.” He explains that everything is tilted towards Bitcoin pre-ETF, but predicts ETH will follow suit.
According to the analyst, the reasons for this underperformance are twofold:
- Bitcoin in the Spotlight: Bitcoin has attracted attention due to the possibility of the Spot ETF being approved in the next few weeks. This has increased interest in Bitcoin as an investment asset and shifted the spotlight away from Ethereum. In addition, Bitcoin's halving event is approaching, which is another major reason why things are tilting towards Bitcoin rather than other altcoins.
- Seasonality: According to the analyst, just as there is seasonality in the markets, cycles also occur. According to historical price movements, the first quarter of the year is an excellent period for the Ethereum ecosystem, while the last quarter is the worst period.
Despite the current negative sentiment, van de Poppe argues that Ethereum is far from dead. He believes Ethereum will take over rather than die for several reasons:
- Transition from PoW to PoS: ETH attracted attention due to the transition from Proof of Work (PoW) to Proof of Stake (PoS). According to the analyst, the real effects of this will take time to emerge, but it is expected to emerge next year along with the fundamental growth of the entire ecosystem. This could lead to greater interest in Ethereum, which is deflationary and could become a more exciting investment asset than Bitcoin.
- Spot ETF Applications: Just as Bitcoin has Spot ETF applications, Ethereum also has a Spot ETF application that will come to the fore after Bitcoin's approval. According to the analyst, this may be even more important than Bitcoin, as it will open the doors to decentralized applications (dApps) that will be built on Ethereum and classified within ETFs.
*This is not investment advice.