Ethereum: What Could Turn its Underperformance? – ALTCOIN MAGAZINE

By OKEx on Altcoin Academy

The prices of Ethereum has been underperforming bitcoin this year, as the second-largest cryptocurrency gained less than 5% this year, while BTC has still maintained its staggering 95% YTD gains despite the previous selloffs. In light of the successful implementation of the latest Istanbul network upgrades, and the rising popularity of the DeFi, does playing the catch-up game with ETH means a viable strategy for investors? From a macro perspective, Ethereum’s approval among financial institutions has been rising noticeably, what does that mean for the broader ETH investors?

Bitcoin has always been the most widely quoted cryptocurrency in the world, it often acts as a benchmark of the broader crypto space, and its performance has been a significant market focus since the very first day. Indeed, the cryptocurrency markets look a lot different now than the time bitcoin made its first debut. The rapid development in the crypto space has widened the broader crypto spectrum, resulting in the rising investment and application appetite for altcoin like ETH, XRP, and EOS. Despite the massive ETH rally in late 2017 to early 2018, the prices of ETH have been significantly underperforming BTC this year.

Figure 1: Ethereum vs. Bitcoin YTD Performance

While many factors may have attributed to ETH’s underperformance, giving a multi-layer analysis could provide us with a more comprehensive look at the Ethereum, and whether the prices of ETH have the potential room to make a decisive turn in the long run.

In the age of the internet, investors sometimes could find difficulties to value new economy companies using conventional valuation methods, FAANG stocks are good examples of that. Despite the over-valued criticisms, the group of the most influential tech giants has been one of the critical drivers of the equity markets for quite sometimes.

Similar to the FAANG stocks, many believe that cryptocurrency is also a network value-driven…

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