Bernstein analysts believe that despite ether's underperformance this year, its fundamentals look strong and its risk/reward ratio attractive.
Bernstein analysts believe that despite ether's underperformance this year, its fundamentals look strong and its risk/reward ratio attractive.
The possibility of a Trump-era #Ethereum exchange-traded fund rate of return, recent inflows into ETFs, good supply and demand dynamics, and a surge in blockchain activity were cited as factors contributing to the resurgence of interest.
Analysts at research and brokerage firm Bernstein said that with the Trump administration, the percentage returns on Ethereum exchange-traded funds in the U. S. are likely to be approved, one of four factors contributing to the resurgence of interest in the second-largest cryptocurrency. 1
The total cryptocurrency market recently surpassed 33.5 trillion, increasing by about 45% after Donald Trump's victory in the U. S. presidential election. Among the major cryptocurrencies, ether outperformed all others during this time, rising 41% compared to 36% and 46% for #bitcoin and Solan respectively. We should also note the recent rise of XRP, which has increased 358% over the same period and surpassed Solana's market value.
However, today, ether is still lagging behind bitcoin - it's up about 125% compared to 122% for bitcoin and 57% for Solana. On Monday, Bernstein analysts led by Gautam Chhugani said in a note to clients that ether is having trouble maintaining its value compared to bitcoin and faces competition from faster Tier 1 blockchains such as Solana, Sui and Aptos. In addition, Ethereum's reliance on Tier 2 scaling solutions will degrade the user experience by forcing retail users to switch to a specific Tier 2 such as a faster blockchain or database, potentially limiting Ethereum's fees and increasing user retention, they said.
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