Market analysis firm Ecoinometrics believes that Ethereum network cryptocurrency Ether (ETH) currently lacks the narrative strength and momentum needed to counter Bitcoin (BTC)’s dominance in the digital asset market.
For this company, the altcoin ecosystem has lost the growth engine that characterized the 2020-2021 cycle and is entering a stagnation phase. Some of these catalysts included the now obsolete non-fungible tokens (NFTs) and Web3 games.
“Beyond its current valuation, it is difficult to see Ethereum questioning Bitcoin’s leadership in the short or medium term,” the company notes. They believe there is a lack of compelling new stories. Limit speculative interest and capital flows into Ethereum.
Bitcoin currently controls 59.9% of the total digital asset market. This is an average range that has maintained over the past three months, with a clear upward trend, as seen in the following graph.
For Ecoinimetrics, the tokenization of real-world assets appears to be the most promising story for Ethereum. Although he warns that This trend “still needs momentum” before being able to maintain a new growth stage.
Despite this situation, the consulting firm recognizes that ETH may be undervalued. Based on its historical relationship with BTC, the company estimates that Ether is trading at a 42% discount to its “fair value,” according to a report by CriptoNoticias.
Still, ecoinometrics concludes that BTC maintains a dominant position that is difficult to challenge due to its institutional adoption. The same goes for the digital store of value narrative.
(Tag translation) Bitcoin (BTC)
