- Ethereum is facing intensified FUD and bearish pressure causing ETH to underperform against both Bitcoin and Solana.
- Ethereum developers remain confident in its long-term potential as the leading smart contract platform.
The cryptocurrency market is undergoing a period of mountainous bearish pressure. This together with general market conditions has led to intensified Fear uncertainty and Doubt among the Ethereum community.
Solana on the other hand seems to be getting a shift in investor sentiment. As a result, Ethereum’s price has underperformed both Bitcoin and Solana.
ETH has been teetering on the brink of financial collapse, in fact at the time of press, the digital asset is swapping hands with $2,542.09 marking a 0.63% surge in the last 24 hours. On a larger scale, the digital asset has plummeted by 2.80% and 2.96% in the past week and month respectively.
Over the past few weeks, putting the limelight on the ETH/BTC ratio, it reached its lowest point in over three and a half years. On October 24, the ratio dropped to 0.037, the lowest since April 2021. The two digital assets have recorded great contrast. While Bitcoin has rebounded from a brief dip, Ethereum is struggling, dipping below $2,500.
Meanwhile, Bitcoin is swapping hands with $68,034.13 marking a 0.78% and 0.53% surge in the past 24 hours and past week respectively. Its Market cap stands at $1.35T after a 1.11% surge.
As earlier reported, as Ethereum battles this FUD, on-chain data shows that high transaction fees on the Ethereum network are discouraging activity, which in turn may be reducing demand for ETH. This disincentive is likely contributing to declining investor confidence.
Thus, many investors are opting for cheaper alternatives and Solana has emerged as a top “alternative.” At the time of writing, Solana is swapping wallets with $175.00 marking a 0.04% surge in the past 24 hours. Additionally, on the weekly and monthly charts, SOL has surged by 13.48% and 15.96% respectively.
While Solana’s market capitalization of $82 billion is still significantly smaller than Ethereum’s which stands at $300 billion, it has sparked discussions about its potential to challenge Ethereum’s dominance in the future. The ongoing momentum in Solana’s price and its growing ecosystem has caused some to speculate that SOL could continue to close the gap with ETH.
Despite the growing bearish sentiment, Ethereum developers and advocates remain staunch defenders of the blockchain’s long-term value proposition. Core Ethereum developer Eric Connor addressed criticism about Ethereum’s scalability and layer-2 solutions, highlighting that Ethereum is committed to true decentralization.
Connor argued that, despite the current FUD, Ethereum remains the leading smart contract platform, bolstered by significant institutional adoption and ongoing developer activity.
He added, “Ethereum is a multi-decade play, but it’s still on the right path to being the true winner.”
Meanwhile, independent trader Bob Loukas admitted to being critical of Ethereum, stating : What we’re seeing is more just a repricing of where the economic activity is and what people are using these [layer-2] chains for ‘today,’
