What Part of the Cycle Are We In?

The Trump election has brought in a wave of optimism (and ATHs) for the crypto community.

Gensler will soon be gone, Warren’s wings will soon be clipped, and regulation by enforcement will become a thing of the past.

No more SBFs… No more grifters…

Finally, builders could build and crypto will be set free from mania and bubbles.

Right? Wrong.

Like every great crypto pump, it was only a matter of time before the grifters would pop up and the madness of crowds would kick in.

Merely two-weeks since the election and we have the Hawk Tuah girl thanking Saylor for getting her to buy bitcoin. Football players who took their salaries in BTC coming out from hiding. And idiot kids are launching memecoins.

We’ve got top exchanges battling it out to see which one can first launch PEPE (a memecoin about a frog) or WIF (a memecoin about a dog with a hat).

Dogecoin, the original memecoin joke (which we guess counts for something) is now trading at a $57 billion market cap – nearly back to it’s 2021 high. To put this in perspective, if DOGE traded on the S&P 500 it would be ranked ~180… right above Target (TGT).

This week, we’ve also got a new and “innovative” $20 million Meme Fund… and shares of Bakkt rising 200% in a day on the heels of a Trump Media & Technology Group (DJT) acquisition rumor.

Ready, set… pop.

Sure, we are being a bit snarky and hyperbolic. But the truth is that this is crypto’s 4th bubble in recent years.

Could it go up more from here? Absolutely.

Will the euphoria end abruptly? 100%.

That doesn’t mean to sit on the sidelines. But it also doesn’t mean to go out and buy the next TikTok memecoin either. Stack sats. Buy some ETH or SOL. Maybe a public crypto company or two. Enjoy the ride.

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Ethereum's Lag Raises Questions Amid Crypto Rally

As crypto markets surge, Ethereum appears to be lagging, calling its long-term growth trajectory into question.

Driving the news: The ETH/BTC ratio has hit a new low. Despite an administration suddenly now open to crypto securities and Ethereum ETFs coming online, Ethereum doesn’t appear to be capitalizing on all the positive sentiment.

ETH is losing the popularity contest: Investors are concerned as competition heats up from Solana and Coinbase's Base. According to a new CoinGecko report, blockchain ecosystems have seen significant shifts in popularity in 2024:

The report attributed Ethereum’s decline to the market's focus shifting towards Layer 2 solutions offering enhanced scalability and lower transaction costs.

Yes, but: While Ethereum may seem to be losing its novelty status, the fundamentals for the world's second-largest blockchain remain strong.

Remember, Ethereum is primarily a Layer 1 blockchain, and major players are building on top of it, benefiting from its security. This includes Coinbase with Base, Kraken with INK, and other Layer 2 networks like Optimism, Polygon, and Arbitrum.

The success of these projects ultimately benefits the Ethereum ecosystem.

Ethereum still boasts $60 billion in Total Value Locked (TVL) – 7x that of Solana – and supports over 3,700 protocols built on its platform. According to DeFiLlama, Solana only has 181.

Our Take: If you're feeling impatient with ETH, it might not be the time to sell, even if other blockchains look more attractive today. Instead, maybe it's just a good time to diversify.

If you're seeking something more exciting, consider adding some exposure to Solana or even Coinbase. But we don't suggest you give up on Ethereum yet just because the price isn't skyrocketing alongside others.

Ethereum’s growth journey is far from being over. Vitalik’s “endgame” roadmap is, well… just taking a while.

What they're saying: Eric Peters, CEO and CIO of Coinbase Asset Management, was recently interviewed on BlockWorks. He seems to agree that Ethereum still belongs as a staple in ones’ portfolio behind bitcoin. But he also thinks adding some exposure to Solana is well worth it.

When asked what he’d prescribe for a 30-40-year-old first-time crypto investor who has a million dollars to allocate, Peters replied:

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