Two Prime deserts Ethereum, questions ‘memecoin-like’ red flags & risk profile
- Two Prime left Ethereum, citing memecoin-like habits and unpredictable danger profile
- Cardano surpassed Ethereum when it comes to developer exercise, difficult conventional market narratives
Ethereum [ETH] is going through numerous institutional backlash, with SEC-registered funding advisor Two Prime asserting a whole exit from the asset.
Citing Ethereum’s “memecoin-like” habits, lagging worth efficiency, and deteriorating worth proposition, the agency has determined to shift its full focus to Bitcoin [BTC].
Why did Two Prime surrender on Ethereum?
After years of lively participation in ETH markets and securing its place as one of many largest international lenders for BTC and ETH-backed loans, Two Prime has concluded that Ethereum now not provides a viable risk-reward profile for critical asset administration.
The agency now plans to completely double down on Bitcoin, initiating a strategic autopsy on its ETH expertise.
Remarking on the identical, its press release claimed,
“ETH’s statistical buying and selling behaviour, worth proposition, and neighborhood tradition have failed past some extent that’s value participating. The chance-reward is just unjustifiable at this level with BTC accessible as a substitute.”
Why did Two Prime select Bitcoin solely?
Two Prime elaborated that Ethereum’s core buying and selling habits has shifted dramatically, making it more and more troublesome to handle from a danger perspective. In keeping with the agency, ETH has decoupled from Bitcoin and now reveals excessive tail danger, mirroring the erratic volatility typical of memecoins.
Whereas Bitcoin maintained a comparatively secure habits throughout Q1 2025’s market turbulence, Ethereum noticed a number of multi-standard deviation swings, signaling structural instability.
Moreover, ETF demand tells a stark story – Bitcoin ETF inflows have eclipsed Ethereum’s by almost 24 occasions, with BTC provide held in ETFs greater than doubling that of ETH, regardless of Ethereum’s comparable market cap.
The agency additional quoted,
“From my perspective, ETH grew to become a sufferer of its early success, rising right into a bureaucratic and ideological group quite than one centered on constructing a tech product.”
It added,
“Bitcoin stands alone in its use case. It has no competitor in digital belongings. It goals to be one factor, and it does it effectively. Establishments flock to economies and belongings which might be constant and predictable.”
Cardano additionally flips Ethereum
That’s not all although as latest findings additionally revealed that Cardano has now surpassed Ethereum in core developer exercise.
Right here, it’s value noting that though Two Prime’s ETH exit triggered a modest worth dip, the broader market sentiment stays buoyant.
For its half, Bitcoin has sustained its dominance with steady positive aspects regardless of all of the market volatility. Ethereum was trading at $1,819.39 at press time.
