Ethereum’s True Potential Is Close
It's all over my feed: Bitcoin has massively outperformed Ethereum this year.
Compared to Solana, the gap is even wider. So far this year, Ethereum has only risen around 13%, while Bitcoin and Solana have gone up by 58% and 73%, respectively. The opportunity cost here is worth noting—and, if past cycles are any indication, it might widen before the end of this year.
ʙᴇᴀʀɪꜱʜ ǫ4 / ʙᴜʟʟɪꜱʜ ǫ1
Historically, Ethereum tends to reach its most attractive buying levels in Q4, particularly in December, which means it may still have some room to drop before the year ends. This window could be essential since Ethereum typically kicks off its upward moves right after Q4. And that momentum is largely driven by real fundamentals.
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Ethereum remains a top pick for institutional investors who often look to it as their entry point into blockchain tech. Institutions lean toward Ethereum for its versatility and adoption, even though Solana’s tech appeal and speed have put it on the map. So while Solana’s strength is evident, Ethereum still holds that early preference.
𝐸𝑡ℎ𝑒𝑟𝑒𝑢𝑚’𝑠 𝑡𝑟𝑢𝑒 𝑝𝑜𝑡𝑒𝑛𝑡𝑖𝑎𝑙
Ethereum’s true potential may not yet be fully visible since its recent upgrade. It has an unique mechanism of burning a portion of fees on every transaction. This feature, implemented with the London hard fork in August 2021, reduces the supply over time. While Bitcoin has a fixed supply of 21 million coins, Ethereum’s system controls inflation by taking ETH out of circulation through these burns, especially during periods of high network activity.
Right now, Ethereum’s network activity may seem quiet, but once activity picks up, we’re likely to see its full potential. For those paying attention, the reduced supply combined with post-Q4 momentum could boost Ethereum’s true strength in the next phase of this crypto cycle.
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Written by Timothy Assi, a popular investor on eToro.
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