Ethereum (CRYPTO: ETH) sits at the centre of one of crypto’s longest-running debates: does it function as a true form of “cryptomoney” like Bitcoin or primarily as a technology platform token with weakening fundamentals?
What Happened: In early 2025, sentiment toward ETH collapsed as it underperformed Bitcoin (CRYPTO: BTC), briefly fell behind XRP (CRYPTO: XRP) in fully diluted valuation, and lost Layer-1 fee share to competitors like Solana (CRYPTO: SOL)
Messari’s Crypto 2026 report stated that confidence hit multi-year lows after ETH/BTC erased all gains from the prior cycle.
That pessimism reversed sharply from May to August 2025.
ETH surged nearly 200%, set a new all-time high, and regained strength against BTC, driven by leadership changes at the Ethereum Foundation, a rebound in spot ETH ETF inflows, and the rise of ETH-focused Digital Asset Treasuries (DATs).
Spot Ethereum ETFs ended the year holding about 5% of total supply, while DATs accumulated roughly 4%, creating sustained institutional demand.
Also Read: Bitcoin, Ethereum, Solana To Hit All-Time Highs In 2026, Bitwise Predicts
Why It Matters: However, Messari’s report stated that core issues remain.
Ethereum’s fee share and base-layer activity are still under pressure, ETH remains below prior cycle highs relative to BTC, and many investors used the rally as exit liquidity.
The value now depends on indirect monetary adoption — whether market participants choose to treat ETH as a store of value alongside BTC.
Ethereum continues to trade with high correlation and beta to Bitcoin, behaving more like a leveraged BTC proxy than an independent monetary asset.
Looking ahead, ETH can continue to outperform in a BTC-led bull market, especially as DATs mature and potentially adopt more aggressive capital structures to accumulate and stake ETH.
While the altcoin’s narrative has stabilized, its monetary status is still unsettled. Until Ethereum meaningfully decouples from Bitcoin, its valuation is likely to continue moving in Bitcoin’s shadow.
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Bitcoin To $88,000, Ethereum, Dogecoin Bounce Too, But Why’s XRP Lagging?
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$ETHEthereum$2971.635.13%Overview$BTCBitcoin$87472.002.36%$SOLSolana$125.705.17%$XRPRipple$1.905.17%Market News and Data brought to you by Benzinga APIs
