We haven't talked about ethereum in a while now. And I say that because I have talked about ethereum many times the past few months. I have gone over its price, action and different anomalies around the market which are having an influence on the prices. Now there have been good times in the year where ethereum went near $4,000 in valuation, the overall year on year numbers are actually quite bad. Ethereum has declined more than 10% instead of growing. That is to say that the stock markets such as S&P 500 and NASDAQ have grown upwards of 20%. So a 10% decline on ethereum does not really look good.
Now throughout the year there are several reasons as to why this happened. The biggest reason that has crossed my desk is the failure of ethereum ETFs. We all know that the American government launched ETFs into the traditional financial markets so that normal people can invest on cryptocurrencies. Although along with normal people. There were institutional investors as well. But that is not the subject of this particular case. The ETFs of ethereum did not raise as much Capital as it would have expected. The Bitcoin ETFs took off a lot better than this. So the Lost revenue is causing a problem. And as for the institutional investors, people simply didn't want to invest in a coin that did not yield. At least on par with BTC. BTC provided a 3 to 4 percent yield year on year. Something which ethereum could not provide so it was disincentivized to invest in ethereum.
Meanwhile, this doesn't mean that the adoption of ethereum has halted or has been hampered in any way. Historically, we've known ethereum to be a very secure network, something which businesses can trust. Companies like BlackRock and other big institutional financiers believe in ethereum because of its security. That is why, even though there are faster options to process the numbers, they flock to ethereum because of its regulatory clarity. But there is possibility for a comeback. There is a motion ongoing which will see ethereum become a stock in the market just like any other. And people and their funds can actually buy them. No ETFs. Have a different set of rules and regulations. Ethereum will have none of those if it is launched directly into the market.
Furthermore, if the rim is working on increasing the decentralization, which will simply mean ethereum will be gaining more utility. Well, the crypto market is now heavily influenced by the traditional markets, we can still have some hope.