The current bull market has seen top alternative cryptocurrencies, except Ethereum, shine, and now, ETH holders are becoming frustrated. Market sentiment signals extreme negativity among the Ethereum community, and the crypto project’s slumping market cap growth is not helping matters.

Compared to other assets like Ripple (XRP) and Solana (SOL), whose market capitalizations have grown by 36.9% and 32.2% in the past month, ETH has been struggling and even recorded a 4.7% decline.

Factors Driving ETH Underperformance

A new report by the market intelligence platform Santiment analyzed factors driving Ethereum’s underperformance.

According to the analysis, the crypto community has been criticizing Buterin for periodically selling off large amounts of ETH. Although the Ethereum co-founder has explained severally that those sales were executed to fund personal expenses or support projects related to the blockchain, community members see them as a sign that he may not be confident in the network’s future.

On several occasions, Buterin’s ETH sales have triggered multi-week-long sell-offs among traders amid heightened concerns about Ethereum’s future and decentralization. Some market participants insist that Buterin, a few big players, and the Ethereum Foundation have too much control over the network because of their large ETH holdings.

These players include Coinbase, Binance, and Lido Finance, and their influence has raised centralization concerns among users. Additionally, users are worried about Ethereum following government rules in some cases, such as blocking transactions to the crypto mixer Tornado Cash.

A Good Sign?

From a more technological perspective, some analysts believe Ethereum’s underperformance could also be linked to its decision to go modular. Modularization in this context refers to Ethereum splitting its responsibilities across smaller, specialized projects called layer-2 solutions.

While going modular could have a positive impact on Ethereum in the long term, ETH is struggling currently because these layer-2 solutions are taking away some of the attention and investment that used to go to the cryptocurrency. One illustration of this issue is the ETH supply spiking significantly after the Dencun upgrade because transaction fees declined, and less ETH got burned.

Regardless of these factors, Santiment believes that the extremely negative social side of Ethereum is a good sign for the short-term future of ETH because the market often moves in the opposite direction from general investor sentiment. So, ETH could finally break past the $4,000 range in the coming weeks if retail traders remain bearish and sell off their coins to long-term holders and key stakeholders out of frustration.

Hashprice, a metric coined by Luxor that gauges mining profitability, estimates the daily income of miners relative to their estimated contribution to the Bitcoin network’s hash power. In other words, it is the expected value miners can expect from 1 TH/s of hashing power per day.

According to Glassnode, hashprice is hovering above $62 PH/s, around the highest level since mid-December.

What’s driving the increase in hashprice? Well bitcoin (BTC) has surged to well over $100,000, a 56% increase in three months and has given the miners some relief. The network has also seen a slight increase in miner fees of late, roughly 12 BTC per day, the highest amount for over a month, partly driven by the network’s inscription activity.

Due to the halving in April 2024, where the mining rewards get cut in half, the hashprice had dropped from around $115 PH/s.

As a result of the halving, miners struggled in share price appreciation on average last year; while mining revenue for much of 2024 was below the rolling 365-simple moving average (SMA). Only since November has it reclaimed this moving average, which is a historically bullish signal.

While the hash rate, the computational power in order to mine on a proof-of-work blockchain, recently hit all-time highs, as a result sent the network difficulty to all-time highs, which eats into mining profitability, as it becomes harder for miners to receive rewards.

European head of research at Bitwise, Andre Dragosch, told CoinDesk exclusively about miners being in a healthier position than last year.

“We have recently seen a decline in network hash rate since the all-time highs in early January. Meanwhile, the price of bitcoin has increased, and the overall transaction count has picked up again. This has led to a recovery in hash price, which should technically incentivize miners to continue ramping up their hash rate”.

Dragosch says, “overall, bitcoin miners appear to be well capitalized judging by the continued increase in bitcoin miner holdings since the beginning of the year which implies that miners are selling less than they are mining on a daily basis”.

Overview of WhiteBIT

WhiteBIT is a centralized crypto exchange offering tools for traders of all levels. Here’s a quick summary:

Key Features of WhiteBIT

WhiteBIT offers several features suitable for both new and experienced traders:

1. Robust Security
   • 96% of funds stored in cold wallets.
   • Advanced security tools like Web Application Firewall (WAF).
   • Regular third-party security audits.
2. Diverse Trading Options
   • Spot, margin, and futures trading with up to 100x leverage.
   • Integration with TradingView for advanced charting and analysis.
3. User-Friendly Experience
   • Multilingual 24/7 customer support, including voice assistance.
   • Demo tokens for beginners to practice risk-free.
4. Passive Income Opportunities
   • Lending programs offering up to 18% interest annually.
   • Auto-invest features for regular portfolio growth.
5. Low Fees
   • Spot trading fees capped at 0.1%.
   • Futures trading fees start as low as 0.0585%.
   • WBT holders receive up to 80% fee discounts.

WhiteBIT Ecosystem

WhiteBIT has built a complex ecosystem that extends beyond basic trading services:

Competitive Advantages

Ethical Practices

WhiteBIT supported humanitarian efforts during the Ukraine conflict, using its Whitepay solution to facilitate donations.

Accessibility

Its tools cater to beginners and advanced traders. Demo tokens help users practice strategies without financial risk.

Regional and Global Presence

WhiteBIT has partnered with organizations like FC Barcelona and Turkish football clubs. It also plans to expand into highly regulated markets, including the U.S.

Passive Income and Rewards

Users can participate in lending programs or earn through trading competitions and affiliate programs. Token burns keep WBT’s supply deflationary, driving value for holders.

Subscribe to Coinbackyard and read more crypto exchange reviews! 

WhiteBIT Coin (WBT)

WBT is the backbone of Whitechain and plays a key role in its ecosystem. Here are its main features:

Whitepay and WhiteEX

Whitepay is a payment gateway allowing businesses to accept crypto payments seamlessly. It offers secure and scalable solutions for merchants. WhiteEX, another WhiteBIT innovation, simplifies crypto-to-fiat conversions for real-world use.

WhiteBIT’s focus on security, accessibility, and user-centric innovation has helped it develop from a local business to a major force in the world. Its alliances and growing ecosystem make it a competitive option for both institutional and retail traders.

After yet another technical hiccup, this time with Solana, Coinbase’s CEO apologized and pledged to scale infrastructure and provide “tier 1” support for high-demand periods.

Coinbase CEO Brian Armstrong has apologized for the Solana delays caused by the exchange’s infrastructure issues, which left users dealing with canceled or slow transactions.

In a post on X on Jan. 22, Armstrong admitted that the platform has the Solana backlog “triaged,” adding that transactions “should generate quickly again.” For users who suffered losses or missed out on the hype due to hours-long disruptions in depositing or withdrawing Solana (SOL) tokens, Armstrong issued his “apologies for the trouble.”

“We have the Solana backlog triaged, and transactions should generate quickly again. If your transaction got canceled you can retry it now – apologies for the trouble.”

Brian Armstrong

Advertisement

He admitted Coinbase needs to do better when it comes to supporting Solana, saying “it’s clear we need to step up our game on Solana, scale our infrastructure, and provide native support for common use cases like DEX/memecoin trading.” Armstrong also promised to give Solana the same top-level support as Bitcoin (BTC), Ethereum (ETH), and Base, though he didn’t go into specifics.

The crypto community remains skeptical. One user, @PAGANDWOLF, pointed out that the exchange “had many years to fix these problems, including issues from last bull markets when volume is high.” The latest incident, tied to Solana’s surge in activity, seems to have overwhelmed the platform’s systems.

Armstrong noted that the increased traffic is a good thing for Solana but admitted the exchange needs to handle it better. “The surge in activity is great for the ecosystem (and these are high quality problems to have), but we need to do a better job serving our customers during periods of high demand,” he said.

A crypto analyst has set a lofty price target for Dogecoin: $20. Based on the meme coin’s current price of $0.365, the forecast represents a substantial 5,380% increase.

Although a captivating concept, this perspective was sufficient to elicit both optimism and skepticism within the cryptocurrency community.

Related Reading

History Shows Dogecoin Thrives After US Political Shifts

Dima James Potts connects his forecast to past trends, noting that Dogecoin usually goes up after US presidential inaugurations. He points out past instances when the coin’s value went up a lot because of heightened political and social interest.

While historical performance doesn’t guarantee future success, this trend offers an intriguing glimpse into DOGE’s potential.

Potts examined Dogecoin’s weekly chart, paying particular attention to the cryptocurrency’s notable price fluctuations following the last two US presidential inaugurations.

Following the occurrence, DOGE saw a spectacular 30x price surge in 2017, and in 2021, it exceeded forecasts with an 80x rally. These past spikes have set the meme coin up for a trend of impressive post-inauguration performance.

$DOGE $10+ DOGECOIN?! 🚀🚀

This weekly chart of #DOGECOIN shows its performance in the days and weeks following each presidential inauguration (indicated by vertical green lines).

Advertisement

• 1st cycle (2017): Dogecoin increased 30X after the inauguration date.

• 2nd cycle (2021):… pic.twitter.com/3unXeJ8YKu

— Ðima James Potts (@DimaPotts36) January 19, 2025

Potts predicts comparable growth potential for the 2025 cycle. Just before the inauguration, Dogecoin was selling at $0.38. He believes that a 55x surge, which is the average of the prior cycles, might push the price above $20.

With the help of celebrity endorsements, especially billionaires like Elon Musk, Dogecoin’s exceptional ability to attract public attention may be crucial to this prediction. Historical momentum and strong community support could pave the way for yet another significant rally.

$20 Is Bold, But Not Impossible

Potts believes Dogecoin’s path to $20 depends on key developments within its ecosystem. A heightened level of utility, new use cases, or relationships with companies around the world might all increase its value.

However, such a value would required levels of adoption and persistent market demand previously unseen.

Skeptics say that DOGE may be unable to sustain such growth since it is not as utilitarian as other cryptocurrencies. Still, given its meme coin status, anything is possible in the volatile crypto market.

Broader Market Dynamics

The state of the world market will have a big impact on Dogecoin’s growth. Potts claims that macroeconomic conditions that are favorable to DOGE may cause it to approach his $20 target.

On the other hand, regulatory pressures or the general pessimism in the market could get in the way of the coin’s trajectory.

At the time of writing, DOGE was trading at $0.3651, up 7.3% and 1.2% in the daily and weekly timeframes.

Like most cryptocurrencies, the value of Dogecoin is influenced by sentiment and demand. Maintaining any obvious progress will thus depend on keeping a strong community presence while drawing fresh investment.

Related Reading

Proceed With Caution

While some people find the idea of Dogecoin hitting $20 exciting, investors should be careful. The crypto market is very unpredictable, and even the best forecasts can be thrown off by unexpected events.

Featured image from DALL-E, chart from TradingView

Long-term holders of bitcoin (BTC) seem to ended their selling spree, a change in strategy that’s helped convert the psychological $100,000 resistance price into a support level for the first time.

With one, short-lived exception, the largest cryptocurrency has held above $100,000 since Jan. 17. The past few days have been extremely volatile due to President Donald Trump’s inauguration, which saw a spike in volatility.

Long-term holders, or investors who have held bitcoin for over 155 days, have been among the biggest contributors to selling pressure on the market, according to CoinDesk research in December. They are deemed “smart money” because they tend to buy when bitcoin prices are depressed and sell into strength, a pattern that’s been observed over the past four months.

In September, this cohort held 14.2 million BTC. It now holds 13.1 million BTC. While the investors held back around the start of the year, sales have picked up again in recent days as the price rose, though at a reduced pace.

The trend to watch out for is when they stop selling. This tends to mark a top in the cycle, which has occurred in 2013, 2017, 2021 and 2024.