The largest altcoin Ethereum (ETH) has failed to meet investors' expectations since the beginning of 2024, as it continues to show weakness against Bitcoin.
As hopes for ETH continue to decline, Bitwise Chief Investment Officer Matt Hougan made positive statements.
According to Coindesk's report, Hougan first stated that the price of Ethereum has not changed much since the beginning of the year, but the price of Bitcoin (BTC) has increased by 38% and the price of Solana (SOL) has increased by 31%.
Stating that no one likes Ethereum right now due to its poor performance, Matt Hougan said that despite this negative atmosphere, Ethereum's underperformance could reverse towards the end of the year.
The famous name said that Ethereum's poor performance was due to risks related to the US presidential election in November, increasing competition with Solana and other blockchains, the struggling token economy, and the failure of spot ETH ETFs in the US to meet expectations.
“Ethereum faces significant risks in the November elections.
While Bitcoin has largely passed regulatory scrutiny, Ethereum has not. The SEC considers ETH a security.
Ethereum could face more challenges if Harris wins and the Biden administration continues its skepticism of cryptocurrencies.”
Ethereum's Fundamentals Are Strong!
Stating that Ethereum is very strong despite all these risks and negativities, Hougan stated that ETH dominates the market in many aspects.
“It’s not all gloom and doom for ETH. The majority of stablecoins are mined on Ethereum, over 60% of all DeFi assets are locked on the ETH blockchain, and the popular prediction market Polymarket is also on ETH.
At this point, Ethereum's current challenges are not fundamental, so investors may re-evaluate ETH as we approach the US elections.
ETH price may rise towards the end of the year with the US elections.”
*This is not investment advice.