- Coinbase: Ether underperforms Bitcoin in 2024 so far
- Report sees positive long-term outlook for Ether despite underperformance
- Coinbase: U.S. Ether ETF approval could be underestimated by market
In a recent report, Coinbase acknowledged that Ether (ETH) has underperformed compared to Bitcoin (BTC) in the cryptocurrency market so far this year. Despite this, the report emphasizes a positive long-term outlook for Ether.
Ether may have the potential to surprise to the upside in the coming months,” Coinbase’s repost stated, stressing that digital assets don’t “major sources of supply-side overhangs” such as token unlocks or pressure created by miners’ sales.
Coinbase’s data shows that Ether has risen in price by 29% over the past year, trailing Bitcoin’s 50% year-to-date gain. Analyst David Han attributes Ether’s potential future growth to its lack of significant supply-side pressures. He emphasizes the increasing role of staking and layer-2 solutions in absorbing ETH liquidity. He further explained:
ETH’s position as the center of decentralized finance (DeFi) is also unlikely to be displaced in our view due to the widespread adoption of the Ethereum Virtual Machine (EVM) and its layer 2 innovations,”
Coinbase also points to the potential impact of a U.S. Ether ETF, suggesting the market might be underestimating the timing and likelihood of its approval. The report acknowledges the initial deadline of May 23, 2024, but expresses optimism about potential litigation reversing a rejection.
Overall, Coinbase maintains a positive outlook for Ether, citing ongoing structural demand drivers and technological advancements within the Ethereum ecosystem. These factors, the report argues, will allow Ether to navigate various market conditions and maintain a stable trajectory.
In a separate development, data from Arkham Intelligence reveals that Coinbase experienced its third-largest Bitcoin outflow of 2024 on May 15th. The outflow, totaling nearly $1 billion, originated from Coinbase cold storage and involved two transactions, each comprising 8,000 Bitcoins.
However, the recent large Bitcoin outflow from Coinbase raises questions about investor sentiment and potential short-term market volatility. The interplay between these contrasting narratives – positive long-term outlook for Ether versus immediate market uncertainty – will likely shape the cryptocurrency’s performance in the coming months.
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