Ethereum's Slump May Reverse as Year Ends: Bitwise

Bitwise, in a Tuesday report, suggests that Ethereum, the second-largest cryptocurrency, may be currently overlooked but could experience a turnaround as the year draws to a close.

Ethereum has seen minimal gains this year, unlike Bitcoin (up 38%) and Solana (up 31%). The report attributes this underperformance to risks associated with the November US presidential election, intensified competition from Solana and other blockchains, challenges in its tokenomics, and mixed reactions to the potential launch of a US spot exchange-traded fund (ETF).

Matt Hougan, Bitwise's Chief Investment Officer, wrote: "Ethereum has the most active developers, the most active users, and a market cap that is five times larger than its closest competitor." He compared it to Microsoft (MSFT) in the blockchain realm, stating: "Everyone wants to talk about the newer companies and their game-changing technology, like Google (GOOG), Slack (WORK), and Zoom (ZM), but Microsoft is still bigger than all of them combined."