Bitwise CIO Says Ethereum is The Best Contrarian Crypto Bet Right Now

The Ethereum price struggles this year have been evident in the crypto sector. Interestingly, these struggles have persisted despite the launch of the Ethereum spot ETFs.

For context, the January 11 launch of the Bitcoin spot ETFs spurred the largest cryptocurrency by market cap to a new all-time high of around $74,000 in March.

However, in Ethereum’s case, it faced capitulation due to selling pressure and other macroeconomic factors. Meanwhile, in a recent disclosure Bitwise CIO Matt Hougan, the asset has been and is still the best contrarian crypto bet this year.

Ethereum’s Apparent Price Struggles

In an interview with Altcoin Daily, Bitwise CIO Matt Hougan stated that Ethereum is currently the best contrarian bet in the crypto market. For context, an asset is said to be contrarian if it goes against the current market trend.

Hougan noted that Ethereum is the crypto asset that people “love to hate” and expects further sideways price disposition for the rest of the year. Notably, he based his assertions on the sentiments around the Ethereum network.

The Bitwise CIO cited people’s perception of Ethereum’s technology as outdated, especially compared to blockchains like Solana and Sui. Furthermore, fee compressions and increased redeployments to layer 2 chains on the network have not helped its course.

Ethereum Still a Leading Blockchain in Crypto: Hougan

While sharing the narratives behind Ethereum’s contrarian nature this year, he believes it remains one of the leading networks in the crypto industry. Hougan argued that Ethereum is the go-to blockchain for traditional financial institutions due to its scalability and intrinsic applications.

The Bitwise CIO noted that Ethereum is still the leading blockchain for stablecoins, decentralized finance, and tokenization. Notably, over 60% of DeFis are locked in on Ethereum, and the network hosts over 50% of stablecoins in circulation.

While stating that Ethereum has been passed over this year as it went through a “complex teenage adjustment in its architecture,” Hougan noted that next year would be an exciting year for the second-largest crypto asset.

Hougan Cites Reasons Behind Ethereum’s Latest Struggles

Notably, Hougan’s latest comment follows an earlier blog post reiterating the same concept. A month ago, the executive stated some reasons behind Ethereum’s underperformance compared to its fierce competitors, Bitcoin and Solana.

Hougan cited regulatory unclarity, as the SEC has yet to officially brand Ethereum as a non-security despite dropping investigations against it earlier in the year. The Bitwise CIO noted that if Democratic nominee Kamala Harris wins and continues in Joe Biden’s skeptical disposition, Ethereum could face further regulatory uncertainties.

Furthermore, Hougan cited Ethereum’s underperforming spot ETFs as a catalyst for its price weaknesses. The investment vehicles have not met expectations, as they have recorded a cumulative net outflow of $530 million since their July market debut.

Meanwhile, Ethereum was trading at $2,622 at the time of writing, up 9.64% in the past seven days.