Institution Sells Off Ethereum! Algorithmic Trading Firm Two Prime Completely Abandons ETH, Turns to Bitcoin
Algorithmic trading firm Two Prime has announced that it will entirely abandon all investments in Ethereum and shift to Bitcoin (BTC). The company stated that ETH's market performance has become 'unpredictable', its 'statistical collapse' is evident, and the risk-reward ratio is no longer reasonable.
Key Reasons:
Declining Market Performance: ETH has dropped 51% this year, in stark contrast to Bitcoin's rebound, exposing a market divide.
Lack of Attractiveness: Two Prime pointed out that the trading behavior and community culture of ETH have failed, leading to a risk-reward scenario that is no longer worthwhile.
Rise of Blockchains like Solana: Compared to Ethereum, blockchains like Solana have attracted a large number of developers and users due to their lower costs and higher speeds.
Challenges for Ethereum:
Fragmented Development Direction: Ethereum's layer 2 solutions have eroded the value of the mainnet, lacking a clear monetization strategy.
Low Market Confidence: Even institutional investors are skeptical about ETH's short-term prospects.
In contrast, Bitcoin's predictability and scale set it apart in the market, making it a more stable choice.
