Recently, Ethereum $2,611 finds itself caught between Bitcoin’s established presence and Solana’s technological advantages in the cryptocurrency market. The decline of Ethereum’s market value below $2,000 has heightened concerns among traders. Observations indicate that Ethereum’s shortcomings in scalability and transaction speed are causing a shift towards alternative projects.
Bitcoin and Solana’s Pressure on Ethereum
Bitcoin $104,310 continues to maintain its leadership in the cryptocurrency market with its first-mover advantage and status as “digital gold.” Its long-proven existence weakens Ethereum’s claim of being a “better currency.” Meanwhile, Solana
$179 stands out with its capacity for thousands of transactions per second and low costs, leading to quicker adoption, especially in DeFi and NFT areas compared to Ethereum.
Crypto expert Casey Rodarmor expresses that Ethereum has failed to define a strategic direction between these two strong competitors. According to Rodarmor, Bitcoin’s reliability and Solana’s technological capabilities threaten Ethereum’s market share. Furthermore, the potential approval process of a Solana ETF is seen as another factor that could impede Ethereum’s advancement.
Investors’ View of Ethereum and Search for Alternatives
The nearly 15% drop in ETH’s value over the past month has led investors to distance themselves from the platform. While large investors seek buying opportunities at lower price levels, smaller investors are gravitating toward projects like Solana, Tron, and XRP. Andre Cronje, founder of Sonic Labs, points out the complexity in Ethereum’s user experience and the inadequate integration of Layer 2 solutions.
On-chain data indicates a decline in the number of large wallets accumulating ETH. This trend signals that even institutions are questioning their confidence in Ethereum. Analysts caution that ETH may test the $1,800 level in the coming weeks, predicting an increase in investments in alternative blockchains.