Ethereum has been struggling to keep pace with Bitcoin and Solana.
Ethereum has been struggling to keep pace with Bitcoin and Solana, and Galaxy Digital’s CEO Mike Novogratz attributes much of this to an "unbelievably bearish" sentiment surrounding the cryptocurrency. Novogratz believes regulatory pressure, particularly from the U.S. Securities and Exchange Commission (SEC), is a major reason for Ethereum’s poor performance in recent months. Speaking on the Infinite Jungle podcast, he pointed to the scrutiny Ethereum faced regarding whether Ether is classified as a security, especially following the SEC’s legal actions against Consensys.
Ethereum’s price has fluctuated over the past few months. As of February 2025, it was trading at around $2,700, a 15% increase over the past year. This is far behind Bitcoin and Solana, both of which have experienced over 100% growth during the same period. While Bitcoin and Solana have seen significant price rallies and reached all-time highs, Ethereum's price trajectory has been erratic, dipping consistently since mid-December.
Novogratz noted that Ethereum’s original narrative as a platform for Web3 technology has shifted. "Most of the market cap of Ethereum right now is store of value, but what got people there is a narrative about this is going to be Web3," he explained. This shift in focus from a Web3 platform to a store of value has affected Ethereum’s appeal. Novogratz emphasized that in crypto ecosystems, enthusiasm around a project’s narrative can drive value, but if that narrative fades, the value may decline as well.
In addition to these challenges, Novogratz also commented on the Ethereum Foundation’s role, mentioning that the organization has been at the center of growing fears, uncertainty, and doubt (FUD). He suggested that the foundation should stick to its role as a research organization and leave advocacy to other entities, like Consensys. Ethereum has faced mounting criticism from within its own community, with many questioning the protocol’s future and some declaring they’ve lost hope.
Despite these struggles, Ethereum remains a prominent store of value in the cryptocurrency world. However, its initial promise as the backbone of decentralized applications and Web3 has faced setbacks, as evidenced by its performance against competitors. With uncertainty swirling both within the community and externally, and as it lags behind Bitcoin and Solana, Ethereum’s future remains uncertain.
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