On September 22, Bitwise said in a report on Tuesday that Ethereum, the second largest cryptocurrency, seems to be ignored now, but as the year draws to a close, Ethereum's poor performance may be reversed.
Ethereum is little changed so far this year, while Bitcoin is up 38% and Solana is up 31%. Ethereum’s recent underperformance stems from risks associated with the November U.S. presidential election, increased competition from Solana and other blockchains, challenges facing token economics, and a mixed response to the launch of spot exchange-traded funds (ETFs) in the U.S., the report said.
“Ethereum has the most active developers, the most active users, and a market cap 5x larger than its closest competitor,” wrote Matt Hougan, chief investment officer at Bitwise. “It’s like the Microsoft (MSFT) of blockchain,” Hougan wrote. Everyone wants to talk about the newer companies and their game-changing technologies, like Google (GOOG), Slack (WORK), and Zoom (ZM), “but Microsoft is still bigger than all of them combined.”
