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Ethereum’s strong performance in recent days has caught the attention of experts. In several posts on This optimism is supported by expected regulatory developments for the decentralized finance (DeFi) ecosystem.
Why can Ethereum outperform Bitcoin?
Raoul Pal, Founder and CEO of Global Macro Investor, explained his view on the potential resurgence of ETH in mail Which received a lot of attention within the cryptocurrency community. “I was expecting ETH to start gaining ground on BTC. It’s partly driven by the risk cycle but also driven by the election,” Pal said.
Pal highlighted two key factors contributing to ETH’s expected outperformance. The first is enhanced utility in DeFi: “Utility tokens in DeFi begin offering a return or reward to the underlying protocol that creates network value. Most of this is done on ETH, Pal explained.
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The second factor is the adoption of traditional financing (TradFi). “TradFi will likely start building larger use cases but on the most tested and adopted chain. Think of ETH (and L2’s) as the Microsoft of web3. No one gets fired for using it,” Pal emphasized.
These developments, according to Pal, are poised to “significantly revalue Ethereum and offset current retail adoption in other chains,” with the added benefit that Ethereum’s revenues will attract more institutional players. He stressed the possibility of building advanced financial products, such as collateralized funds, under improved regulatory conditions. “With better organization, this activity will grow,” Pal concluded.
Supporting Pal’s predictions, Dan Tapiero, founder and CEO of 10T Holdings — a growth equity fund that specializes in mid- to late-stage investments within the digital asset ecosystem — commented on Pal’s post: “Yes. A more eloquent version of what I posted last night. Very funny.” “
Tapiro referred to what he said earlier confirmation That “Ethereum is too cheap. It’s going to explode from here. Gensler & Co. killed Davey in the US in 22-24. Not killed now. Long live US Davey. Breaking $4k over $8k next year.”
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However, Pal also pointed to the hierarchical adoption landscape within the cryptocurrency space, suggesting that while ETH may outperform BTC, it may underperform Solana (SOL), and thus Sui (SUI). “My view is that ETH started to outperform BTC for the rest of the cycle but SOL was underperforming SOL and SOL was underperforming SUI in that SUI is in the final performance phase of adoption – proven early,” he noted, “Let’s see.”
The discourse on Ethereum’s prospects has also attracted participation from the broader cryptocurrency community. A user named Himura (@aceddeca1) suggested an alternative investment thesis: “ETH would be good, but if that’s your thesis, it’s better to spend it on UNI especially with Unichain… Uniswap moving to private chain is the primary token it would like Coinbase to launch “. “An interesting idea,” Pal replied succinctly.
Additionally, user Galavis (@FedericoGalavis) raised concerns about potential biases: “Be careful with SUI people as only 0.82% of the supply was opened. Are you a paid SUI promoter Raul? If you are you better come clean.” Pal responded by saying “You need to do more research on all your comments,” he said, addressing speculation about his integrity.
Notably, Pal serves as a board member of the Sui Foundation, a fact that may inform perceptions of his commentary on SUI.
At press time, Ethereum was trading at $2,916.
Featured image created with DALL.E, a chart from TradingView.com
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