Ethereum

Bitcoin

when

The biggest altcoin, Ethereum (ETH) is facing challenges in keeping up with the upward running momentum in comparison to <a href="https://news.todayq.com/bitcoin-drops-5-liquidations-hit-396m-what-is-market-up-to/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC). Despite being the second largest crypto, Ether’s performance has lagged behind BTC’s impressive gains in the first quarter of this year. However, the global crypto market saw a sharp decline on Tuesday. Ethereum decline to continue 
While Bitcoin has surged by approx 65% in the first three months, Ether recorded a modest increase of around 53%. Ethereum is trading at least 32% below its all-time high (ATH) registered in November 2021, while BTC has scaled new peaks.
It is important to see that even a recent technical upgrade of the Ethereum blockchain failed to generate enough excitement among the community. Its price dropped by 10% in the last 7 days and marginally over the last 30 days. This happened when the upgrade was aimed at lowering transaction fees. ETH is trading at an average price of $3,302, at the press time.
Experts suggest that Ethereum’s challenges to its lack of name recognition among non endemic investors. However, the approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) could impact its future trajectory.&nbsp;
We have already seen that similar approvals for Bitcoin ETFs fueled institutional demand which later drove its price to record highs.
According to reports VanEck’s filing for Ether ETFs is awaiting a decision on May 23. It holds expectations of approval driving bullish forecasts and this includes predictions of Ethereum reaching $8,000 by the end of 2024. Regulatory complications 
The regulatory ambiguity building around Ether’s legal status poses a challenge for the industry. On one hand, the SEC has categorized Bitcoin as a commodity but Ether’s classification remains uncertain. The unique characteristics of Ether’s blockchain have raised questions about whether it could be considered a security. The proof-of-stake mechanism is one of them.
These regulatory uncertainties complicate the prospects for Ether ETFs, as staked Ether may include stricter regulatory requirements. Experts see that gaining SEC approval for staked Ether ETFs will be a big challenge.
Despite institutional demand for ETH being lower than that for Bitcoin, some market participants have remained bullish over Ethereum’s underlying technology.
Ethereum’s blockchain serves as the foundation for various applications in decentralized finance and blockchain gaming. It is now attracting interest from firms like BlackRock, which recently launched a tokenized fund on the blockchain.

Ethereum lags behind Bitcoin, What’s behind this decline?

Todayq News

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