Originally published on: September 19, 2024
Despite Ethereum being in a bit of a slump recently, critics of the blockchain may regret their stance according to Bitwise’s chief investment officer. Matt Hougan from Bitwise believes that dismissing Ethereum at this point might turn out to be a mistake and even seem “silly” in the long run.
While there is a lot of negativity surrounding Ethereum currently, with its Ether price remaining stagnant compared to other cryptocurrencies, Hougan highlights some key points that cannot be ignored. He points out that Ethereum still holds 50% of stablecoins and is home to 60% of all decentralized finance assets, making it a significant player in the blockchain space.
At the recent Token2049 conference in Singapore, attendees showed a strong interest in Ethereum, indicating that despite the challenges it faces, Ethereum still captures the majority of mind share in the real world. This sentiment is further supported by the fact that Ethereum has the highest number of active developers, making the most GitHub commits in the last week compared to its competitors.
Sure, Ethereum is going through a rough patch with its Ether price dropping against Bitcoin and concerns raised by regulators about its assets and decentralized finance. However, Hougan remains optimistic about Ethereum’s future, especially with the upcoming US presidential election potentially bringing clarity to the regulatory landscape.
While Ethereum may seem like an underdog now, it could be a potential contrarian bet for investors looking towards the end of the year. So, is it right to underestimate Ethereum, or could it surprise everyone and emerge stronger than ever? Only time will tell.
