Altcoins are suffering from the lack of narrative and new investors to go up in time. While Bitcoin has been following a perfect uptrend for several months, the altcoins are unable to catch up with the path Bitcoin opens. According to several investors, one of the primary reasons stems from the poor performance of Ethereum leading the altcoins ecosystem.
People have different perspectives regarding the valuation of Ethereum in 2025. There are some groups of people supporting the idea that the realm of Ethereum is over, as newer or more popular blockchains are likely to end the tyranny of Ethereum, such as Solana, Avalanche, or Sui. Though they are absolutely promising projects, the power of the Ethereum blockchain does not come from the seasonal popularity or the speed it offers.
The other group of people blames Ethereum for keeping the price of the ETH coin deliberately high with constant selling pressure. The historical BTC/ETH parity has been as low as 0.03, although the 0.05 levels were believed to be unbreakably solid.
The main actor behind the selling pressure on Ethereum is the Ethereum Foundation that dumps ETH on the market in a regular basis. According to BeinCrypto news, Ethereum Foundation sold Ethereum every 11 days which made up to $10M from January to September in 2024.
Even though $10M is probably nothing for Ethereum in a bull market, the fearful times can be the riskiest era for cryptocurrencies to stay strong. Knowing the fact that their move will affact the whole altcoin ecosystem, Ethereum Foundation did not keep themselves from doing it.
When it comes to today's market conditions, the team chooses to find a new way of utilizing the ETH funds managed. Ethereum Foundation's DeFi Strategy is shaped on lending ETH on DeFi giants like Aave to borrow some stablecoins to cover their operational costs.
It might be a late action, but better than nothing.
Many Ethereum investors complain about the poor performance of the foundation rather than the coin. The foundation is spoiled and no longer adding value to the growth of the Ethereum ecosystem and the Layer 2s on it. If the price of Ethereum is not $5000+, I relate it to the broken faith in the foundation managers. Vitalik is a great guy with genius ideas, but the trend Ethereum is in does not seem sustainable. Time is against the foundation, and they are yet to be aware of it.
The lending strategy can be the first green light for the future, but we need more and bigger steps to trust them again.
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