Why altcoins may not grow despite Ethereum ETF effect
Altcoins' market cap versus Ethereum has fallen over years.
Ethereum surpassed other cryptocurrencies despite market beliefs that they leverage its price.
Analysts say 2x long ETH may be better than altcoins before the Ethereum ETF debut.
According to onchain analyst Thor Hartvigsen, Ethereum might outperform altcoins with the debut of ETH ETFs, despite market expectations that these tokens give leveraged exposure to ETH.
Ethereum has outperformed most altcoins.
Thor Hartvigsen of On Chain Times said that investing in Ethereum-related cryptocurrencies to leverage ETH may be a bad idea before the ETH ETF debut.
Since the overall altcoin market value vs. Ethereum has been declining for years, Hartvigsen said that it's hard to identify altcoins that can outperform ETH.
Ethereum surpassed almost all tokens in the Layer 2 ecosystem, alternative Layer 1s, DeFi, and memes thought to be highly correlated with it year-to-date, save TON, BNB, PENDLE, ENS, MKR, PEPE, and SHIB.
The price connection between ETH and the tokens that outperformed it is also distinct, since most are 60% or less connected. It "indicates that more of their performance is a result of other factors (potentially BTC correlation or idiosyncratic variables)," he said.
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