- Ethereum lagged Bitcoin with weaker performance in 2024 and tepid ETF demand
- Experts and traders have different views on Ethereum’s future, with opinions ranging from bullish to cautious
Ethereums [ETH] The 2025 bull market potential is coming under increasing scrutiny, with many wondering whether it can deliver strong gains. While Ethereum has long been a leader in the blockchain space, recent trends are raising concerns about its ability to outperform in the next cycle.
For example, Markus Thielen, head of research at 10x Research, has expressed his own doubts, suggesting it may underperform Bitcoin this year. He pointed to a 1% decline in active validators over the past month, highlighting risks such as increased unstaked and weak demand outside of Ethereum’s staking ecosystem.
Thielen’s cautious outlook makes Ethereum a less attractive investment for those eyeing the 2025 rally.
Bitcoin vs. Ethereum: The Past Year
Source: Coinmarketcap
Ethereum’s disappointing performance in 2024 underscored its mounting challenges. While Bitcoin rose 121.4%, Ethereum lagged significantly, returning only 46.3%. The big difference can be attributed to the January 2024 launch of Spot Bitcoin ETFs, which attracted $35.3 billion in inflows and propelled Bitcoin to new heights.
In contrast, Ethereum ETFs, launched in July, were met with tepid demand at just $2.66 billion. This disparity highlighted Ethereum’s struggle to keep pace with Bitcoin, especially in light of increasing competition and more bearish sentiment surrounding Ethereum’s ecosystem. As the 2025 bull market looms, these trends raise questions about Ethereum’s ability to regain its former dominance.