On September 13, an analyst at Coinbase stated that Ethereum's recent underperformance relative to its peers, besides network activity decline and token inflation, may be linked to broader market factors following the deleveraging event in early August.

David Duong, Head of Global Research at Coinbase, said in a report, "Ethereum network activity and supply inflation are significant factors in its underperformance, but we also believe that the current market structure is affecting price action." Many crypto investors are focusing on illiquid altcoins and other positions, potentially locking in funds that could have flowed to networks like Ethereum within the broader crypto ecosystem.

"Currently, native crypto investors are dominating the market, and this group is potentially concentrated in altcoins and other more illiquid crypto positions. We believe Ethereum needs a new catalyst to reignite developer and investor enthusiasm to catch up," he added.

Duong also stated that the market is increasingly focused on comparing Ethereum with other smart contract platforms due to the lack of new narratives and limited capital supply. "In fact, we believe many traditional participants still lack a better understanding of Ethereum's supply schedule and smart contract utility," he concluded.