Ethereum (ETH) Is the Laggard in This Bullish Cycle. Don't Blame Ethereum or Its Leaders

Taking to X, one analyst thinks ETH is trailing Bitcoin, Solana, and even Tron, not because of how the network is designed or its leadership.

Bitcoin and altcoins like Solana and Tron have outperformed Ethereum in the past seven months. While the second-most valuable coin is trading at a loss of almost 40%, some analysts believe that ETH’s dismal performance is due to “uninformed” investors.

After prices peaked in March, Vitalik Buterin and the Ethereum Foundation have been offloading their stash. According to Dune, the foundation has been transferring coins regularly. On September 6, they moved 1,000 ETH when the coin changed hands at $2,300. Most of these coins were sent to exchanges for liquidation.

Buterin also sells meme coins from time to time and donates the proceeds to various charities across the globe. Usually, whenever a senior executive or foundation sells, it is bearish. However, an analyst on X thinks their actions, including many others centered on network improvement, aren’t a big concern.

According to the observer on X, ETH is falling because investors lack knowledge about the project’s fundamental strengths. Most importantly, the argument is that ETH can be a better store of value than gold. The observer insists that Ethereum and Bitcoin compete, and claiming otherwise is a mistake. Both of these networks want to dominate the market eventually.

So far, Bitcoin is the most valuable. On the other hand, Ethereum is the most active smart contracts platform, offering more versatility and is “richer” than the first blockchain.

For ETH to grow in strength, it must establish itself as a superior store of value, better than Bitcoin. This will require the network to have strong supply dynamics and a greater focus on finance as a primary use case. Once this happens, ETH will be more attractive not only to investors but also to developers.

For now, Ethereum is growing in strength, looking at ETH net deflation since EIP-1559, according to UltraSound Money. At the same time, its roll-up ecosystem is booming, scaling the mainnet. Altogether, the coin could benefit in the long-term, pushing valuation higher.

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