- Ethereum lagged behind Bitcoin with a weaker 2024 performance and tepid ETF demand
- Experts and traders feel differently about Ethereum’s future, with opinions ranging from bullish to cautious
Ethereum’s [ETH] potential in the 2025 bull market is under increasing scrutiny, with many questioning whether it can deliver strong gains. While Ethereum has long been a leader in blockchain, recent trends raise 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 that it may lag behind Bitcoin this year. He pointed to a 1% decline in active validators over the past month, highlighting risks such as greater unstaking and weak demand beyond Ethereum’s staking ecosystem.
Thielen’s cautious outlook makes Ethereum a less attractive investment for those eyeing 2025’s rally.
Bitcoin vs Ethereum: The year gone by
Source: Coinmarketcap
Ethereum’s underwhelming performance in 2024 highlighted its mounting challenges. While Bitcoin surged by 121.4%, Ethereum lagged significantly, delivering only 46.3% returns. The stark 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, introduced in July, opened to tepid demand with a mere $2.66 billion. This disparity highlighted Ethereum’s struggle to keep pace with Bitcoin, particularly in light of increasing competition and a more bearish sentiment surrounding Ethereum’s ecosystem. As the 2025 bull market looms, these trends raise questions about Ethereum’s ability to reclaim its former dominance.
