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    Ethereum’s Ether trails behind Bitcoin with modest growth in 2021, faces slim odds of surpassing previous high

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    Ethereum’s Ether (ETH) has underperformed compared to Bitcoin in 2021, with only 36% growth versus Bitcoin’s 109%. Amberdata research predicts a slim 10% chance of ETH exceeding its May 2021 high of $4,000. The researchers attribute this to weak fundamentals, including the switch to ‘layer 2’ DeFi transactions causing inflation supply. However, ETH still has potential to exceed $4,000 depending on Bitcoin’s momentum, despite expected continued underperformance.

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    Ethereum’s Ether (ETH), often portrayed as the silver to Bitcoin’s (BTC) gold, has underperformed this year, with a growth of only 36%, lagging behind Bitcoin’s impressive 109% surge. The diminished interest in ETH has kept its market price at around $3,100, well below its record price of $4,832 in 2021. Conversely, BTC currently trades at an all-time high well over $90,000.

    Amberdata research shows a slim 10% chance of ETH exceeding the May high of $4,000. This underdog status leaves ETH more akin to the palladium of the crypto market, constantly trailing behind gold-standard Bitcoin. The tepid market outlook for ETH is largely attributed to weak fundamentals by the researchers.

    “At the moment, traders are only giving a 10% chance of ETH topping the $4,000 mark by December 27. This could be a clear sign that the expected regulatory shift under President Trump’s administration, which is less inclined towards enforcement actions against decentralized finance (DeFi) and other crypto sectors, is yet to spark investor interest in ETH.

    The research firm Amberdata credits the uninspiring expectations for ETH to its weak standing. They said, “ETH is facing major challenges as the idea of ‘sound money’ (or deflationary supply due to transaction fee burn) has now tipped over to inflation supply because almost all DeFi transactions are being carried out on so-called ‘layer 2’ solutions, rather than on the Ethereum ‘layer 1’. This could be a significant factor pulling down ETH prices.”

    Despite the clouded outlook, ETH still has the potential to hurdle over the $4,000 level deciding on Bitcoin’s ongoing uptrend momentum, but it’s expected to continue its underperformance compared to BTC.

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