$ETH Wall Street analysts lists 3 reasons why Ethereum is rallying

Ethereum has surged 65% over the past month, rebounding after a prolonged period of underperformance relative to Bitcoin.

According to Bernstein’s Gautam Chhugani, there are several factors that likely contributed to the recent underperformance.

While Bitcoin crossed $100,000 and established itself as the dominant store-of-value asset, the world’s second-biggest cryptocurrency lagged behind, with the ETH/BTC ratio down about 45% over the past year.

Also, much of Ethereum’s retail activity shifted to Layer 2 solutions like Coinbase’s Base, while faster blockchains like Solana attracted new retail applications.

As a result, Ethereum was left in an ambiguous position— “neither the best store of value, nor the best blockchain destination for speculative retail trenches,” Chuggani said in a Wednesday note.