Ethereum has broken an eight-year support trend against Bitcoin, raising questions about the second-largest cryptocurrency’s future.
“Dying a slow death”—that’s how Tuur Demeester, founder of Bitcoin hedge fund Adamant Capital, described Ethereum, pointing to the broken trendline to a canary in the coal mine.
Crypto analysts blame Ethereum’s setback on slow institutional adoption, where Bitcoin continues to dominate. This could have deeper implications for the token’s positioning as an asset class.
Ethereum’s struggles come during a mixed week for the broader crypto market.
Bitcoin’s price is flat Monday, hovering around the $90,000 mark, while Ethereum has dropped 0.3% to $3,080. Altcoins show a mixed performance: Solana is up 4.6%, Dogecoin is flat, XRP has gained 7.2%, BNB is down 2.3%, and Cardano is up 2.9%.
The institutional divide
According to Kaiko, a crypto data firm, Bitcoin’s dominance over Ethereum is due to its superior adoption among institutional investors, particularly through exchange-traded funds (ETFs).
The disparity became more evident with the launch of crypto ETFs—with Bitcoin ETFs drawing significantly higher trading volumes than Ethereum ETFs.
In fact, Bitcoin ETFs garnered more than $47 billion in assets within their first 30 days, while Ethereum ETFs brought in just over $6.7 billion, according to Amberdata, a crypto analytics firm.
“The divergence in performance and on-chain activity can also be attributed to the distinct value propositions of Bitcoin and Ethereum,” Amberdata noted in a recent report.
“Bitcoin, often referred to as ‘digital gold,’ has a simple and well-defined narrative as a store of value and inflation hedge, thanks in part to its fixed supply of 21 million BTC.”
Bitcoin benefits from its fixed supply and simpler use case. Ethereum—though more versatile—suffers from scalability challenges and regulatory scrutiny, particularly regarding its transition to a proof-of-stake model.
The divide extends to institutional endorsement.
Bitcoin ETFs have already earned their name among major Wall Street asset managers. For example, earlier this year, Fidelity added Bitcoin ETFs to its 401(k) plans, while Morgan Stanley allowed its financial advisors to recommend these ETFs to clients.
Ethereum, by contrast, has not received the same level of institutional backing. Even the best-performing Ethereum funds lag far behind Bitcoin’s ecosystem in terms of adoption and media attention, according to Amberdata.
A slow fade or room to Rrebound?
Demeester’s stark prognosis may be premature, but it reflects growing concerns about Ethereum’s competitive positioning as a mainstream alternative asset class.
To regain its edge, experts argue that Ethereum must address scalability issues and redefine its role as a technology-driven platform rather than competing directly with Bitcoin’s store-of-value narrative.
Until then, institutional dollars appear to favor Bitcoin.
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