Ether May Struggle to Deliver Meaningful Rallies in 2025 According to 10x Research
As the cryptocurrency market continues to navigate through uncertainty, analysts are weighing in on the potential performance of Ethereum (ETH) in the upcoming bull run. In a recent market report, Markus Thielen, head of research at 10x Research, expressed concerns that Ether may not be the wisest investment choice for 2025.
Underwhelming Returns Expected
According to Thielen, Ethereum’s returns are expected to be underwhelming compared to Bitcoin (BTC) in the coming year. "While we appreciate Ethereum’s volatility, we believe it remains a poor medium-term investment and expect ETH to underperform BTC once again in 2025," he said.
Avoiding Ethereum
Thielen emphasized that the research firm’s stance on Ethereum remains clear: "avoid." This warning is based on several factors, including the trend of active validators, which has seen a decline in growth rate over the past 30 days. Thielen noted that this could lead to an increase in unstaking and a decrease in real demand for Ether outside of staking.
Growing Concerns
The growth rate of validators had dropped by about 1% over the past 30 days, raising concerns about the increasing risk of more validators exiting the network. Thielen highlighted that a rise in unstaking seems "logical" given Ethereum’s lack of real demand outside of staking.
Diversification and Demand
However, not all analysts agree with Thielen’s assessment. Attestant’s chief business officer, Tim Lowe, recently told Cointelegraph that demand for Ether can easily increase with refined marketing and a unified value proposition. Lowe believes that diversification from Bitcoin is a simple catalyst for Ethereum.
Comparing ETF Inflows
The performance of Ether-based exchange-traded funds (ETFs) in the United States provides an interesting comparison. While Bitcoin ETFs saw $35.3 billion in inflows across the year, Ether ETFs reached only $2.66 billion. Thielen attributed this disparity to the lackluster demand for Ethereum.
Upgrades and Catalysts
Thielen is also skeptical of the upcoming upgrades, including the Duncan upgrade in March, which reduced gas fees but arrived "six months too late." He believes that even the successful upgrades have had a limited impact on price. "Of the 19 upgrades so far, only two have had a notable positive impact on price, and even those occurred during Bitcoin bull markets," he said.
Uncertainty Ahead
While Thielen’s predictions may not be universally accepted, other analysts share similar concerns about Ethereum’s performance in 2025. Pseudonymous crypto trader Cold Blooded Schiller noted that Ether has been "rangebound" since December 25 and one of two scenarios is likely to play out: a price breakout or a retest of the $3,000 level.
Bullish Views
However, not all analysts are bearish on Ethereum. MN Capital founder Michael van de Poppe expressed a more bullish view, saying that Ether is showing signs of breaking out relative to Bitcoin in January 2025.
Conclusion
As the cryptocurrency market continues to navigate through uncertainty, it remains to be seen which way Ethereum’s price will go. While Thielen’s warnings should not be taken lightly, other analysts offer differing views on the potential performance of Ether in the upcoming bull run.
Key Takeaways
- Ethereum may struggle to deliver meaningful rallies next year.
- The trend of active validators has raised concerns about the increasing risk of more validators exiting the network.
- Thielen expects ETH to underperform BTC once again in 2025.
- Diversification from Bitcoin is a simple catalyst for Ethereum, according to Lowe.
Related Reading
- Bitcoin Price ‘Stuck in a Void Between Liquidity’ on NYE — Will 2025 Open Bring the Volume?
- Magazine: Bitcoin Payments Are Being Undermined by Centralized Stablecoins
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