Veteran Trader Calls Ethereum a “Broken Utility Coin”

Following the recent US presidential election, the crypto market has seen renewed activity, with significant inflows into both Bitcoin and Ether exchange-traded funds (ETFs) as investors look to capitalize on a post-election rally. Trading veteran Peter Brandt weighed in on the outlook for two key cryptocurrencies, Ethereum (ETH) and Solana (SOL), expressing a mixed perspective on their long-term potential. While Ether ETFs recorded their highest inflows in weeks, with net additions of $52.3 million, Bitcoin ETFs saw an even greater surge of $622 million. 

Trading Legend Peter Brandt Delivers a Bold Take on Ethereum and Solana: Can ETH Compete with SOL’s Rising Momentum?

Peter Brandt, a name synonymous with trading acumen and market insights since the 1970s, recently shared a striking assessment of two leading altcoins, Ethereum (ETH) and Solana (SOL). Known for his straightforward critique, Brandt took to social media to express his thoughts on the future trajectories of these cryptocurrencies. His perspective, layered with skepticism toward Ethereum’s structure and a more favorable outlook on Solana, adds a new dimension to the ongoing debate surrounding these altcoins as investors and traders search for signs of the next big move in the crypto market.

Brandt’s commentary has turned heads, especially with his blunt classification of Ethereum as a “completely broken utility coin.” His criticism targets the often-debated complexity and costliness of the Ethereum ecosystem. Ethereum has long been praised as a revolutionary smart contract platform, but its high transaction fees and intricate network mechanics have also made it a target of criticism. Brandt’s view aligns with earlier critiques he’s voiced, highlighting Ethereum’s scalability issues and high gas fees, which can alienate small-scale users and dampen its appeal as a functional, user-friendly ecosystem.

Interestingly, despite his critique of Ethereum’s functionality, Brandt’s analysis still signals that both ETH and SOL are primed for significant price moves. This aligns with Bitcoin’s recent market rally, which has seen BTC soar to a new all-time high above $75,000. Bitcoin’s ascent often sets the stage for altcoins to follow suit, particularly when investor interest and market confidence are high. Brandt’s analysis, which spans multiple financial markets, suggests that Ethereum and Solana, despite their differences, are on the cusp of a price surge.

Ethereum’s potential growth, as noted by Brandt, is complicated by what he refers to as “major overhead resistance.” This technical factor represents a considerable supply of ETH waiting to be sold if prices rise, creating a barrier that could stymie Ethereum’s upward movement compared to Solana’s more unencumbered momentum. With Bitcoin’s rally acting as a potential catalyst for altcoins, Ethereum’s existing resistance levels could limit its gains, especially when compared to a competitor like Solana, which Brandt sees as better positioned for growth.

While Brandt doesn’t mince words when it comes to Ethereum, he has expressed a notably more positive outlook on Solana. As Ethereum grapples with transaction costs and complexity, Solana has gained traction for its faster, more affordable transaction processing and growing adoption. Brandt points to Solana’s price momentum as a key factor distinguishing it from Ethereum. The network’s approach to decentralized applications (dApps) and DeFi (decentralized finance) has attracted developers and users who value efficiency, putting Solana in a unique position to challenge Ethereum’s dominance in the space.

Brandt’s preference for Solana isn’t isolated. This year, SOL has outperformed ETH and caught the attention of investors who view it as a viable alternative in the long term. Since the beginning of 2024, Solana’s performance has been impressive, with steady price appreciation that has further solidified its appeal. Meanwhile, Ethereum’s price, despite Bitcoin’s rally, has grown by only 23.21%, lagging behind both Bitcoin and Solana. This underperformance has sparked discussions about whether Ethereum can retain its top spot among altcoins if other networks continue to outpace it.

Ethereum has long been the cornerstone of the smart contract and dApp ecosystems, but its challenges have become more pronounced as the network scales. High transaction costs, often driven by network congestion, remain a significant hurdle. For users and developers alike, these fees can be prohibitive, particularly for those managing smaller transactions. Layer-2 solutions, which are intended to reduce fees and improve transaction speeds, offer some relief, but they are not without their own complexities. 

Despite the obstacles, Ethereum retains a loyal community and significant institutional backing. Many investors are hopeful that the Ethereum 2.0 upgrades, which promise to reduce fees and increase scalability, will eventually address these issues. However, the roadmap for these improvements is lengthy, and Ethereum’s price performance this year suggests that some investors are unwilling to wait. In the meantime, Solana’s faster network and lower costs are winning over those looking for efficient and cost-effective alternatives.

Solana vs. Ethereum: A Growing Rivalry in the Crypto Ecosystem

Solana’s rise as a serious contender to Ethereum has reinvigorated the debate over which network will ultimately dominate the smart contract and DeFi spaces. Ethereum has the advantage of being a first mover with a vast ecosystem, but Solana’s innovation and rapid price gains are putting pressure on ETH’s position. For Brandt, the choice between the two is clear: Solana’s user-friendly approach and scalability give it a competitive edge over Ethereum’s complex and costly structure. Solana’s trajectory suggests that it could continue to draw users away from Ethereum, especially those frustrated by high gas fees and delayed upgrades.

Yet, it’s not entirely a zero-sum game. Ethereum’s advocates argue that its broader developer base and the ongoing efforts toward Ethereum 2.0 place it in a unique position to tackle its challenges. Solana’s appeal, however, is hard to ignore, especially in the short term, as it continues to make headway and capitalize on the momentum surrounding its market performance.

Record Inflows for Spot Ether ETFs Amid Post-Election Crypto Rally in the US

In a week marked by significant crypto market momentum following the US presidential election, spot Ether ETFs in the United States experienced a surge in inflows, hitting their highest levels in six weeks. According to preliminary data from Farside Investors, nine recently launched spot Ether ETFs collectively attracted an impressive $52.3 million in net inflows on Nov. 6.

While still modest compared to the inflows into spot Bitcoin ETFs, this level of investment activity represents a notable turnaround for the Ether ETF market, which had seen quieter days since Sept. 27. This surge in investment activity comes despite a high-profile fund, BlackRock’s iShares Ethereum Trust, reporting zero net inflows for the day.

The bulk of the inflows were concentrated in two major funds: Fidelity’s Ethereum Fund and Grayscale’s Ethereum Mini Trust. Fidelity emerged as the top performer, raking in $26.9 million, while Grayscale followed closely with $25.4 million in net inflows. The remaining seven spot Ether ETFs, however, saw no new inflows on this particular day.

Despite the inflows, the broader Ether ETF market remains in a challenging position. Net aggregate flows for all Ether ETF products combined still stand at a negative $490 million, primarily due to ongoing outflows from Grayscale’s high-fee ETHE fund. 

Since Grayscale’s conversion of the ETHE product to a spot ETF in July, the fund has experienced a significant exodus of capital, resulting in a $3.1 billion reduction in assets under management (AUM). The steady decline in AUM has weighed on the overall performance of Ether ETFs, but Nov. 6 offered a glimmer of optimism as inflows outpaced withdrawals.

Meanwhile, spot Bitcoin ETFs demonstrated even more robust performance. The 11 US spot Bitcoin ETFs collectively saw net inflows of $621.9 million on Nov. 6, reversing a streak of three consecutive trading days marked by outflows. 

The Fidelity Wise Origin Bitcoin Fund led the charge in Bitcoin ETF inflows, securing a massive $308.8 million—the fund’s largest inflow since June 4. Several other well-known Bitcoin ETFs, including those managed by Bitwise, Ark 21Shares, and Grayscale, each saw inflows exceeding $100 million, signaling a strong vote of confidence from institutional and retail investors alike.

Despite these strong inflows, BlackRock’s iShares Bitcoin Trust saw its second consecutive day of outflows, with $69.1 million exiting the fund. This outflow, however, did not dampen market enthusiasm, as BlackRock experienced its highest-ever daily trading volume of $4.1 billion, underscoring the firm’s continued influence in the ETF space.

Investor Preferences: A Tilt Towards Bitcoin, But Growing Interest in Ether

While Bitcoin remains the dominant player in the spot ETF market, Ether’s inflows suggest a growing appetite for diversification within the crypto investment landscape. Ether’s recent price gains, combined with its renewed ETF inflows, suggest that investors are becoming increasingly comfortable allocating funds to both Bitcoin and Ether ETFs, recognizing the unique value propositions of each asset.

However, Ether’s lower inflows relative to Bitcoin may also be a sign of lingering investor caution about its long-term scalability and transaction cost challenges, which continue to spark debate within the crypto community. Ethereum’s transition to a proof-of-stake model, as part of the Ethereum 2.0 upgrade, is intended to address these issues, but the full implementation is still a work in progress. Until then, Bitcoin may continue to command a larger share of ETF inflows, as it remains the go-to digital asset for many institutional investors.