Why did Ethereum perform poorly in this bull market?
In the last bull market, Ethereum soared from $81 to $4,800, an increase of nearly 60 times, becoming a hot spot for investors. However, in this bull market, Ethereum rose from $881 to a maximum of $4,000, an increase of less than 5 times, and its overall performance was not as good as Bitcoin, which has a larger market value. This disappointed many people who bet on Ethereum, and then questioned Ethereum's performance in this bull market.
My analysis is that Ethereum will indeed continue to rise, but it will not soar as much as in the last bull market. There are two main reasons:
1. Own characteristics: In the currency circle, currencies can be divided into two categories: one is meme coins with no practical use (such as Bitcoin), and the other is practical coins with practical use (such as Ethereum). Ethereum is similar to a mature enterprise that has passed the period of rapid development. Facing competition from other public chains, its growth rate naturally slows down.
2. Market value: Ethereum's current market value is about $2.21 trillion. Although it is smaller than Bitcoin's $8.86 trillion, considering that part of Bitcoin has been lost and the market value of Ethereum compared with other cryptocurrencies, its size is already large. The profit growth of mature companies usually does not make a big leap again, and the same is true for Ethereum.
Therefore, it is wise to lower expectations for Ethereum in this bull market.
Recently, I paid attention to Starlink (contract ending 6fd9) on ETH, a Musk concept meme coin in the primary market. As the popularity of space exploration rises, this project has a low market value and active community building, which deserves continued attention.
