Ethereum (ETH), the world's largest altcoin, is facing major challenges as investors have expressed disappointment with recent price performance. Meanwhile, Layer 1 competitor Solana is gaining a lot of attention among investors as DeFi activity increases. Popular economist Alex Krueger says ETH is no longer Trump's trade and explains why he stopped betting on altcoins altogether.
Shifting focus from Ethereum to other Solana
Even though President Donald Trump is likely to win, prominent crypto analyst Alex Krueger advises betting on Ethereum. He speculated that while the overall altcoin market will turn positive following Donald Trump's victory, ETH is unlikely to rise.
“If an asset is supposed to go up and it moves in the opposite direction, that means the market is telling you something,” Krueger said. Unlike other altcoins, ETH has not participated much in the market rally over the past year. Furthermore, the launch of the Spot Ether ETF was not enough to garner institutional interest in Ether.
Krueger excluded ETH from his campaign strategy, noting Ethereum's multi-year downward trend relative to Bitcoin (ETH/BTC) and moving on-chain activity away from ETH.
Krueger had previously entered long on both ETH and SOL, betting on the prospect of a Trump victory. However, he recently stated that he would like to remove ETH from his core assets and instead focus on Bitcoin and Solana. He pointed to Solana's recent performance and growth in Layer 2 and the Bitcoin ecosystem as a better opportunity. To keep up with Solana's growth, Vitalik Buterin proposed several measures to increase TPS on the Ethereum blockchain.
Additionally, during the recent AI meme coin craze, Solana overtook Ethereum in terms of daily revenue. Krueger said SEC Chairman Gary Gensler could be fired following President Trump's victory. This opens up the opportunity for Spot Ether ETFs to stake ETH.
However, in this situation, Krueger predicts that the Solana ETF will enter the market and that SOL will once again maintain its top spot.
Trader withdraws long ETH position
Popular trader James Fickell is withdrawing his long position in ETH/BTC as the price drops to its lowest price since April 2021. A few hours ago, Fickell exchanged 2,000 ETH ($5.06 million) for 74.75 laps Bitcoin (WBTC) and deposited an additional 20,000 Ethereum. ETH from Coinbase Prime ($50.6 million).
Additionally, Fickell's ETH/BTC position saw significant paper losses amounting to over 23,000 ETH, worth a staggering $58 million. Therefore, crypto traders have been actively reducing their positions against ETH in recent days.
James Fickell (@jamesficker) seems to be accelerating the reduction of his long ETH/BTC position!
8 hours ago he exchanged another $2,000 $ETH ($5.06 million) 74.75 $WBTC and deposited 20,000 $ETH (from $50.6 million) #CoinbasePrime.
he still has 980.2 $WBTC ($65.4 million) debt #Abe.… https://t.co/rftJT0vxFU pic.twitter.com/BU5HzuxAEU
— Spotonchain (@spotonchain) October 26, 2024
Meanwhile, co-founder Vitalik Buterin defended the recent sale of the Ethereum Foundation. His comments were made when explaining Helios' role in scaling multi-chain Ethereum.
One user asked why the Ethereum Foundation is actively selling if it is driving major developments on the blockchain. In response, Buterin said developers and other contributors in the ecosystem need to be compensated.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance led him to focus on the emerging blockchain technology and cryptocurrency market. He is passionate about continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading thriller fiction novels and sometimes hones his cooking skills.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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