Bitwise: Ethereum is the Microsoft of blockchain

Ethereum, the second-largest cryptocurrency, may seem like a nobody right now, but its underperformance could reverse as the year draws to a close, Bitwise said in a report on Tuesday. 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 with 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 that is 5 times larger than its closest competitor," wrote Matt Hougan, chief investment officer at Bitwise. "It's like the Microsoft (MSFT) of blockchain," Hogan 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."