Ether more ‘like a memecoin,’ says trading firm as ETH drops 45% YTD
Two Prime, a US-based investment advisory firm, has ceased support for Ether (ETH) and shifted to a Bitcoin-only strategy due to ETH's significant price decline of 45% year-to-date. The firm cited ETH's unpredictable trading behavior and lack of value proposition as reasons for the change, stating it now resembles a memecoin rather than a stable asset. Two Prime's decision follows a period of lending $1.5 billion in both BTC and ETH over 15 months. The firm noted that ETH's performance has led to difficulties in algorithmic trading and lending. In response, the crypto community speculated that Two Prime's remarks could signal a potential bottom for ETH. Additionally, Two Prime highlighted the poor performance of Ether exchange-traded funds (ETFs), with BTC ETF purchases significantly outpacing ETH. Despite this, ETH remains the largest altcoin in terms of assets under management for crypto ETFs, with $9.2 billion compared to Solana and XRP.
