- Ethereum’s lower fees have contributed to its underperformance compared to Bitcoin.
- The Dencun upgrade boosted Layer 2 (L2) transactions but hurt Ethereum’s direct value accrual.
- Optimism’s token (OP) has surged due to increased L2 activity, while Ethereum faces challenges in retaining value.
The third quarter of 2024 proved to be challenging for most of the crypto market, especially Ethereum. According to a report by IntoTheBlock, Bitcoin’s market share hit its highest level since April 2021, while Ethereum and other smaller tokens experienced yearly lows.
Yet, despite the fees going down 86%, Bitcoin’s dominance has continued to increase. Confidence in the market is strong in Bitcoin as a store of value, and the gap it creates with ETH is not decreasing but instead increasing.
This is partly due to the recent bad performance of Ethereum as a financial asset. Whereas Bitcoin still seems to be a form of…
