Coinbase Sees Upside for Ether Despite Recent Bitcoin Outflow

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Coinbase: Ether underperforms Bitcoin in 2024 so far
Report sees positive long-term outlook for Ether despite underperformance
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In a recent report, Coinbase acknowledged that Ether (ETH) has underperformed compared to Bitcoin (BTC) in the cryptocurrency market so far this year. Despite this, the report emphasizes a positive long-term outlook for Ether.

Ether may have the potential to surprise to the upside in the coming months,” Coinbase’s repost stated, stressing that digital assets don’t “major sources of supply-side overhangs” such as token unlocks or pressure created by miners’ sales.

Coinbase’s data shows that Ether has risen in price by 29% over the past year, trailing Bitcoin’s 50% year-to-date gain. Analyst David Han attributes Ether’s potential future growth to its lack of significant supply-side pressures. He emphasizes the increasing role of staking and layer-2 solutions in absorbing ETH liquidity. He further explained:

ETH’s position as the center of decentralized finance (DeFi) is also unlikely to be displaced in our view due to the widespread adoption of the Ethereum…

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