We are never shy by making ETH count as the second largest active in Crypto and the definition gateway for traditional investors. But conventional adoption requires a growth story, and so far this year, ETH cannot lead.
ETH is in 16th position in the Coindesk 20 YTD performance classification table, 53%less. Returning a year, the numbers look similar: 15th place and 50%less. Its market capitalization has decreased both in relation to XRP that both are expected to be limited in the next reconstitution of Coindesk 20, a first.
ETH problems are news for few in the industry, but for us as index and product builders for “5%-ers”, the question poses: Is eth still eth? special? A distinguished origin can only take it so far. ETH continues to dominate its categories in the chain (even before adding L2S) and it could be said that it is the second best brand in Crypto. There are even reflexive ideas about the final state of ETH as an essential support component of our future blockchain; We listen to expressions such as “Ethereum will be Defi’s Clearinghouse”.
But conventional adoption requires a growth story.
We have observed in the last weeks that Bitcoin has shown an impressive resilience to the fragile global markets. Last week it was no exception, and as we pointed out last week, the expectations of higher inflation, now they state by the president of the Fed, Powell, could help support the movement in Bitcoin.
But Bitcoin cryptographic market dependence to lead the highest prices is one that we hope that the class of digital assets exceeds. ETH can reaffirm a leadership position, as it did briefly in the weeks after the US elections. If not, Coindesk 20 investors have exposure to much of the eth competition.
