$ETH

m - Ethereum is poised to perform strongly in 2025, potentially outperforming Bitcoin, according to analysts at Compass Point Research.

In their latest blockchain and crypto newsletter, they highlight the key factors that could drive Ethereum’s growth in the coming year.

Bitcoin (BTC) and Ethereum (ETH) have both seen significant gains since the recent Trump/Republican elections, with Bitcoin up around 44% to $100,000 and Ethereum up 38% to $3,600.

Despite these gains, Compass Point points to the recent 13% year-end pullback in Bitcoin, which has led to a temporary pullback in mining stocks.

However, they expect “a strong upside rally in hashrate over the next six months” as Bitcoin prices outpace the network’s hashrate growth.

The report confirms that Ethereum is set to recover again in 2025. The company said: “We continue to believe that Ethereum (ETH) is set to have a recovery year in 2025, with opportunities to buy ETH/BTC currently trading at $0.037 and down almost 70% to BTC since the PoS merger in September 2022.” Compass Point analysts believe that the recovery year will be driven by relaxed regulations and increased clarity around smart contracts and decentralized computing platforms.