TechFlow News, September 20 — According to Coindesk, financial research firm Steno Research released a new report indicating that Ethereum’s recent relative underperformance may be nearing an end, with potential for renewed strength both against fiat currencies and in comparison to Bitcoin (BTC). Mads Eberhardt, analyst at Steno Research, emphasized that the Federal Reserve’s recent interest rate cuts are expected to boost on-chain activity, which would positively impact the Ethereum network. Additionally, the report argues that Bitcoin ETFs’ current outperformance over Ethereum ETFs may not last, as historical data shows Ethereum has strong potential to rapidly outpace Bitcoin in the short term.
The report also delves into three main factors behind Bitcoin’s recent outperformance relative to Ethereum: divergent impacts of U.S. spot ETFs on the two cryptocurrencies, MicroStrategy’s continued aggressive Bitcoin purchasing strategy, and a significant decline in transaction revenue on the Ethereum network over recent months. Nonetheless, Eberhardt noted that active address counts on the Ethereum network remain robust, especially considering the growing adoption of Layer 2 scaling solutions (rollups). He added that transaction revenue on the network appears to have bottomed in August 2024, signaling early signs of recovery.
