Once A Leader, Now A Liability? Ethereum Declines In A Changing Market

Ethereum ETH (Photo Illustration by Budrul Chukrut)
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Is Ethereum Losing Its Edge? Rival Layer 1’s Gain Ground
Once hailed as the backbone of decentralized applications and smart contracts, Ethereum is showing signs of distress.
While it remains the second-largest cryptocurrency by market capitalization, its lead is rapidly eroding as ‘Layer One’ competitors like Solana and Cardano gain ground.
Simultaneously, institutional investors are increasingly pivoting to Bitcoin. Two Prime, an SEC-registered investment advisor, recently announced it was abandoning Ether entirely in favor of a Bitcoin-only strategy.
Two Prime, known for its curated Bitcoin derivatives strategies and transparent investment approach, cited Ethereum’s declining reliability and increased volatility as key reasons for the move.
CEO of Two Prime, Alexander Blume, argued that ETH now trades more like a meme coin than a foundational asset, showing erratic behavior that has decoupled it from Bitcoin.
"ETH’s statistical trading behavior, value proposition, and community culture have failed beyond a point that is worth engaging," the firm stated.
ETH is down 45% year-to-date, and its ETF demand has lagged behind Bitcoin’s by a factor of 24, further signaling a waning institutional appetite.