Algorithm trading company 2 Prime Officially fell The exposure to Etherit (Ethereum) states that ETH is now trading as a meme, not an predictable asset.
According to Alexander Blume CEO, the company will now manage and lend BTC (Bitcoin) exclusively. He believes that Bitcoin is the only digital asset that meets institutional standards for liquidity, predictability and long -term investment survival.
This decision has a one -year performance difference between BTC and ETH, and the Two Prime has issued more than $ 1.5 billion in loans supported by Bitcoin and Ethereum through the loan department.
Despite the exposure, the company concluded that Ether Lee’s current behavior is no longer consistent with risk -adjusted revenue expectations suitable for institutional portfolios.
Blume wrote:
“ETH’s statistical transaction behavior, value proposal, and community culture failed beyond the value to participate.”
It doesn’t matter and the tail risk increases
According to the quantitative analysis cited by the two prime, Etherrium’s volatility and return structure have been separated from Bitcoin since the November 2024 US election.
Bitcoin showed a classic average reflection, and offered investors’ trust and deep purchasing activities, but ETH continued to be lowered due to restrictions on rebounds.
In the scattered grapes comparing the 30 -day revenue with the 30 -day return, the ETH shows the continuous amount of exercise and lacks symmetry observed in BTC data.
In addition, the volatility of ETH is now similar to the volatility of a memo, such as Dogecoin (Doge). Comparing the 30 -day range of volatility of BTC, ETH and DOGE, ETH has been distant from the historically mild volatility profiles, and sudden multiple standard deviations are not consistent with institutional assets.
Weak institutional demand
The two prime also pointed out the wide difference in institutional demands. The Bitcoin ETF currently manages more than $ 113 billion assets, consuming 5.76%of the total BTC supply. In contrast, ETFS has only $ 47.1 billion in ETFS, which accounts for 2.22%of ETF supply.
Despite the high market capitalization of Ether Leeum, most of the ETF inflow may be offset by the short future of the basic transaction, and actual demand can be further diluted.
This difference creates a reflective environment that reduces visibility and investor allocation by providing less resources for public relations.
According to Blume, the lack of continuous institutional interests of ETH weakens long -term survival as a core digital asset.
Ether Leeum’s value proposal erosion
Beyond the transaction behavior, the two prime questioned Ether Leeum’s economic and technical models.
The company pointed out that the latest alternatives, such as Solana (SOL), are attempting to serve as a general purpose distributed computing platform for Ether Leeum, which is increasingly difficult.
This new infrastructure provides faster transaction throughput, low cost and better user experience in sensitive applications such as games and payments.
Blume also argued that Ether Leeum Layer -2 Network was canned most of the value capture of the main net. In his assessment, assets lack a clear revenue -generating model that can support evaluation and utility claims.
Governance and cultural headwinds
The decision of the two prime also elements the factors that are characterized by the exacerbation of Ether Lee’s governance and the deterioration of the focus.
Blume explained Ethereum’s internal structure slowly in bureaucratic and ideological and adaptation to the competitive market situation. He argued that Ether Lee first prioritized equalism about effective product development and market relationships.
Bitcoin provides intensive and singular use cases with the storage of distributed values, but now it is now one of the many speculative technology platforms that have no durable edges.
Blume Conclusion:
“ETH and the problem of the leadership seem to know it.”