Galaxy Digital founder and CEO Mike Novogratz has expressed concern over the current sentiment surrounding Ethereum, describing ETH ($2,707.51)’s continued lag behind rivals like Bitcoin and Solana as “incredibly bearish.”
Despite being a long-term supporter of Ethereum, Novogratz noted that the coin has underperformed its peers. In a recent interview, he attributed this weakness to regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC).
Novogratz explained, referring to former SEC Chairman Gary Gensler’s actions against Ethereum-related entities: “I think the biggest reason it underperformed is because Gensler loaded up on ETH, sued Consensys, questioned whether it was a security.”
Last April, Consensys filed a lawsuit against the SEC over its classification of ETH as a security. However, later in the year, the SEC approved the launch of spot ETH ETFs, further shaping the market’s view of the asset.
Related News: Top FED Members Commented on Bitcoin, Cryptocurrencies and Interest Rates
While Bitcoin (BTC ($97,268.26)) and Solana (SOL ($192.23)) recently reached new all-time highs in the midst of bullish cycles, Ethereum’s price trajectory has been inconsistent. ETH has been on a steady decline since mid-December.
Novogratz also commented on the developing investment trend for Ethereum. Unlike Bitcoin, which has received more media attention, especially after former President Donald Trump’s Bitcoin 2024 speech, Ethereum’s primary investment thesis may have shifted. “Right now, most of Ethereum’s market cap is a store of value, but what’s bringing people there is a trend that this is going to be Web3,” Novogratz said. “The reality for all crypto ecosystems is that trend drives enthusiasm, and enthusiasm drives value.”
Another factor that has been weighing on Ethereum is the uncertainty surrounding the Ethereum Foundation. Novogratz acknowledged the “FUD” (fear, uncertainty, and doubt) surrounding Ethereum co-founder Vitalik Buterin and the foundation itself: “Vitalik, the ETH Foundation, this is a bit of FUD. People are looking for excuses. The Foundation needs to continue to follow the right path, be a research organization, and organizations like Consensys or other relevant organizations need to be advocates.”
*This is not investment advice.
Continue Reading: Billionaire Entrepreneur Mike Novogratz Talks About Altcoin Facing Hard Times: “Incredibly Bearish”
