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Ethereum’s strong performance in recent days has caught the attention of experts. In several posts on This optimism is supported by expected regulatory developments for the decentralized finance (DeFi) ecosystem.
Why Ethereum could outperform Bitcoin
Raoul Pal, Founder and CEO of Global Macro Investor, expressed his views on ETH’s potential revival in a after that has received a lot of attention within the crypto community. “I expected ETH to gain ground on BTC. It is partly determined by the cycle of risk-taking, but also by the elections,” Pal said.
Pal highlighted two primary factors contributing to ETH’s expected outperformance. The first is the improved utility in DeFi: “Utility tokens in DeFi are starting to provide yield or reward for the underlying protocol that creates network value. Most of this is on ETH,” Pal explained.
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The second factor is Traditional Finance (TradFi) adoption. “TradFi will likely build larger use cases, but on the most tested and approved chain. Think of ETH (and the L2s) as the Microsoft of web3. No one gets fired for using it,” Pal claimed.
These developments, according to Pal, are poised to “dramatically revalue ETH and offset current retail adoption in other chains,” with the added benefit that ETH yields will attract more institutional players. He highlighted the potential for constructing advanced financial products, such as guaranteed funds, under improved regulatory conditions. “With better regulation, this activity will explode,” Pal concluded.
In support of Pal’s prospects, Dan Tapiero, founder and CEO of 10T Holdings – a growth equity fund specializing in mid- to late-stage investments within the digital asset ecosystem – said of Pal’s post: “Yes. A more eloquent version of what I posted last night. Very funny.”
Tapiero previously referred to his own story statement that “Ethereum is too cheap. It’s going to explode from here. Gensler and Co killed Defi in the US in ’22-24. Not murdered now. Long live American Defi. A $4,000 break, which will exceed $8,000 next year.”
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However, Pal also noted a hierarchical adoption landscape within the crypto space, suggesting that while ETH could outperform BTC, it could underperform Solana (SOL) and then Sui (SUI). “My view is that ETH starts to outperform BTC for the rest of the cycle, but underperforms SOL and SOL underperforms SUI as SUI is in the ultimate performance stage of adoption – early > proven. Let’s see,” he noted.
The discourse surrounding Ethereum’s prospects also attracted involvement from the broader crypto community. A user named Himura (@aceddeca1) suggested an alternative investment thesis: “ETH will be fine, but if that’s your thesis, it would be better spent on UNI, especially with Unichain… Uniswap going to have its own chain is it base token that Coinbase would like to launch.” Pal replied succinctly: “Interesting thought.”
Additionally, concerns about possible bias have been raised by user Galavis (@FedericoGalavis): “Be careful with SUI people as only 0.82% of the offering is unlocked. Are you a paid SUI promoter Raoul? If so, you better make it public.” Pal countered: “You need to do more research on all your comments,” addressing speculation about his impartiality.
It is notable that Pal is a board member at the Sui Foundation, a fact that may influence the perception of his commentary on SUI.
At the time of writing, ETH was trading at $2,916.
Featured image created with DALL.E, chart from TradingView.com
Credit : www.newsbtc.com
