Is Ethereum Dead: 2023 Underperformance Against BTC Sparks Community Debate

Due to the relative underperformance of Ethereum (ETH) compared to Bitcoin (BTC), some community members believe that Ethereum is dead. Whereas others argue that the ETH bull run is yet to begin.

Ethereum is one of the early layer-1 protocols with smart contract capabilities. Later, over the years, many competitors emerged, promising faster transactions and lower fees.

Hence, some X (Twitter) users believe the second-largest cryptocurrency is dead. But is it?

Ethereum Trades at 18-Month Low Compared to Bitcoin

As per TradingView data, ETH is up by 45% from October 2023 lows. Whereas the flagship crypto asset Bitcoin, has surged by nearly 65% in the same period. Not to mention, Ethereum competitor Solana has skyrocketed by over 310% in two months.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

Furthermore, the ETH/BTC trading pair, which compares the price of Ethereum against Bitcoin, is trading at an 18-month low. The screenshot below shows that ETH/BTC has formed a double-top chart pattern on a monthly time frame, with the neckline at 0.05.

ETH/BTC is at a critical price point, testing the support of the neckline. A breakdown from the neckline might result in a further downfall.

Due to the underperformance of the ETH price, some community members believe that Ethereum is dead. Also, the renowned analyst Peter Brandt has shorted Ethereum with a target of $1,000 and $650.

ETH/BTC monthly timeframe. Source: TradingView

Strong Fundamentals

However, Ethereum enthusiasts argue that on the fundamental side, Ethereum is stronger than in previous market cycles. It has a total value locked (TVL) of $26.45 billion, with a 52% share in total TVL across all other chains.

Total Value Locked on All Chains. Source: DefiLlama

Moreover, the screenshot below shows that Ethereum has more revenue than both Avalanche and Solana combined. Ryan Sean Adams from Bankless stated that Ethereum makes $2.7 billion in annualized profits and is “the only profitable chain.”

Due to various fundamental factors, he declared that the Ethereum bull run is yet to begin. Not to mention, many fund managers have filed for a spot Ethereum ETF.

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

Ethereum Revenue Compared With Solana And Avalanche. Source: DefiLlama

Addressing the concerns about Ethereum being dead, a community member wrote on X (Twitter):

“Ethereum has a $260,000,000,000 market cap. About the same as Bank of America, which is the 36th most valuable company on earth. I think the “eth is dead” narrative is MAYBE just a bit exaggerated.”

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