{"id":17100,"date":"2024-09-19T13:16:36","date_gmt":"2024-09-19T10:16:36","guid":{"rendered":"https:\/\/forklog.com\/en\/bitwise-cio-critics-of-ethereum-will-be-proven-wrong\/"},"modified":"2024-09-19T13:16:36","modified_gmt":"2024-09-19T10:16:36","slug":"bitwise-cio-critics-of-ethereum-will-be-proven-wrong","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitwise-cio-critics-of-ethereum-will-be-proven-wrong\/","title":{"rendered":"Bitwise CIO: Critics of Ethereum Will Be Proven Wrong"},"content":{"rendered":"<p>Ethereum has recently faced criticism due to its negative price trend, but this situation is expected to change. This view was <a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/a-contrarian-bet-on-ethereum?utm_medium=email&#038;_hsenc=p2ANqtz-_I91IdWhpBZAquQjOBNjqVlJh1pJz6dQGg7SDApSGaYfaPnUwhKpjjP6P6JXafzPE1suytmkzfixjzFhvzjhXYbFs_Ew&#038;_hsmi=325026337&#038;utm_content=325026337&#038;utm_source=hs_email\">expressed<\/a> by Bitwise&#8217;s Chief Investment Officer (CIO) Matt Hougan.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIt&#8217;s currently fashionable to dislike Ethereum. I bet that in the end, this will look foolish,\u201d he noted.\u00a0<\/p>\n<\/blockquote>\n<p>In recent months, Ethereum has shown weakness. At the time of the <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-etf-trading-commences-amid-moderate-pressure-on-price\">launch of the <span data-descr=\"exchange-traded fund\" class=\"old_tooltip\">ETF<\/span> on July 23<\/a>, the cryptocurrency was trading around $3500; at the time of writing, the price is slightly above $2400.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXezGvKeypKJtZta2E_GMKM2K5-riEqWr-fztOMI-x8_sRtX0BWbZaSvVLJjNqDYNM9lazVWUk1PVhjpCIRIFvjXIOcFL7FkxVEPKyL6h-9GXeqcC3ZKt0LZ-oEk0nSlj5_MVVjgp9FnMTaHXnJG-wRGvHQ?key=4-imD-Y_fxncxud9y9yWlw\" alt=\"CIO Bitwise: \u043a\u0440\u0438\u0442\u0438\u043a\u0438 Ethereum \u043e\u043a\u0430\u0436\u0443\u0442\u0441\u044f \u0433\u043b\u0443\u043f\u0446\u0430\u043c\u0438\"\/><figcaption class=\"wp-element-caption\">Daily ETH\/USDT chart on Binance. Data: <a href=\"https:\/\/ru.tradingview.com\/chart\/?symbol=BINANCE%3AETHUSDT\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Against Bitcoin, Ethereum&#8217;s quotes have hit a local low, falling below the 0.04 level. The last time it reached this value was in April 2021.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXelFafzHhSZZaC_eEj5LQG8dWvX8CSEbrbU2C_EUc1gb7sRouLiZp3QHw6xLgmExN8pFklyIHfupTlBA5tG7ncj2-ObUHBDpfIeG-DNskEvFEZHOlbZQM1xu_p_eqMcu99P5lAkZvzRAdUh-4ykvjVdItI?key=4-imD-Y_fxncxud9y9yWlw\" alt=\"CIO Bitwise: \u043a\u0440\u0438\u0442\u0438\u043a\u0438 Ethereum \u043e\u043a\u0430\u0436\u0443\u0442\u0441\u044f \u0433\u043b\u0443\u043f\u0446\u0430\u043c\u0438\"\/><figcaption class=\"wp-element-caption\">Daily ETH\/BTC chart on Binance. Data: <a href=\"https:\/\/ru.tradingview.com\/chart\/?symbol=BINANCE%3AETHBTC\">TradingView<\/a>.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cRight now, nobody likes Ethereum. [\u2026] The community atmosphere is tense,\u201d Hougan noted.<\/p>\n<\/blockquote>\n<p>He cited the following reasons for the weakening of the second-largest cryptocurrency by market capitalization:<\/p>\n<ul class=\"wp-block-list\">\n<li>the risk of the November elections. Bitcoin has passed regulatory scrutiny, and even the head of the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>, Gary Gensler, considers it a commodity, which cannot be said for Ethereum. Staked coins may be classified as securities. The agency is also concerned about the DeFi ecosystem, which largely determines the price of Ethereum;<\/li>\n<li>growing competition from Solana and other blockchains offering higher throughput and lower costs;<\/li>\n<li>questionable tokenomics. Due to the focus on L2 solutions, activity on the main network has <a href=\"https:\/\/u1f987.com\/en\/news\/ethereums-on-chain-activity-reverts-to-february-levels\">decreased<\/a>, and blockchain revenues have fallen to a four-year low;<\/li>\n<li>mixed ETF results. Bitcoin-based funds have raised billions, while the situation is not as optimistic for the second-largest cryptocurrency by market capitalization.\u00a0<\/li>\n<\/ul>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXeYsVVqMqmUj6Npr3X9Aw-Bc2Kbdus1Jbke9XMW1UZxzdOkM57WOn6Lr5bPbVwl9a9bNpnS9TnAvj6VcVfBWJRta4SoeVrqX4fuoGOmfpknkiTVyXXLyLA2T20YNFPKBmwKXF5QMTPH-Nx_J9gGgN6EP7Ya?key=4-imD-Y_fxncxud9y9yWlw\" alt=\"CIO Bitwise: \u043a\u0440\u0438\u0442\u0438\u043a\u0438 Ethereum \u043e\u043a\u0430\u0436\u0443\u0442\u0441\u044f \u0433\u043b\u0443\u043f\u0446\u0430\u043c\u0438\"\/><figcaption class=\"wp-element-caption\">Weekly inflow and outflow dynamics in Ethereum-based ETFs. Data: <a href=\"https:\/\/sosovalue.xyz\/assets\/etf\/us-eth-spot\">SoSoValue<\/a>.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThese are valid concerns, but they miss the bigger picture,\u201d Hougan pointed out.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Advantages of Ethereum<\/h2>\n<p>The expert highlighted the following positive aspects of Ethereum:<\/p>\n<ul class=\"wp-block-list\">\n<li>almost all successful applications like stablecoins, DeFi solutions, and Polymarket are built on this blockchain;<\/li>\n<li>BlackRock chose Ethereum to create a tokenized fund, which exceeded $500 million in value;<\/li>\n<li>Nike decided to build a Web3 platform based on this network;<\/li>\n<li>Ethereum has the most active developers, users, and a market capitalization five times that of its nearest competitor;<\/li>\n<li>Ethereum is the only programmable blockchain with some regulatory support in the US, and it has a growing multi-billion dollar futures and ETF market.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIt&#8217;s like Microsoft among blockchains. Everyone wants to talk about Google, Slack, and Zoom, and for good reason: each brought revolutionary technology to the market. But Microsoft is still bigger than all of them combined. [\u2026] People are too quick to dismiss Ethereum and the real success we are already seeing in its ecosystem,\u201d emphasized the Bitwise CIO.<\/p>\n<\/blockquote>\n<p>He believes that none of Ethereum&#8217;s problems seem existential, and the cryptocurrency&#8217;s opportunities are abundant. The market may re-evaluate ETH as the November elections approach and any regulatory clarity emerges.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAt the moment, it looks like a potential contrarian bet for the rest of the year,\u201d concluded Hougan.<\/p>\n<\/blockquote>\n<p>Previously, he supported the launch of a meme coin ETF.<\/p>\n<p>Back in August, a top manager at Bitwise <a href=\"https:\/\/u1f987.com\/en\/news\/bitwise-cio-political-stance-on-cryptocurrency-is-irrelevant\">concluded<\/a> that the crypto industry was \u201cnot optimistic enough.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum has recently faced criticism due to its negative price trend, but this situation is expected to change. This view was expressed by Bitwise&#8217;s Chief Investment Officer (CIO) Matt Hougan. \u201cIt&#8217;s currently fashionable to dislike Ethereum. I bet that in the end, this will look foolish,\u201d he noted.\u00a0 In recent months, Ethereum has shown weakness. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[949,46,1138],"class_list":["post-17100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitwise","tag-ethereum","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=17100"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17100\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/17099"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=17100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=17100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=17100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}