Investment advisor Two Prime is ditching Ethereum over its memecoin-like behaviour and underwhelming value efficiency. The SEC-approved agency says it is going to double down on Bitcoin (BTC) whereas conducting a autopsy on Ethereum.
Two Prime Drops Ethereum Over Memecoin Behaviour
SEC-approved funding advisor Two Prime has known as it quits with Ethereum following a raft of damaging fundamentals and on-chain metrics. According to a company statement, the derivatives agency will focus its consideration on Bitcoin, chopping ties with Ethereum after six years.
The agency operated Two Prime Lending, rising to change into the second-largest lender for ETH and BTC-backed loans. Rather than dabble in different cryptocurrency-backed loans, Two Prime caught with BTC and ETH, given their deep liquidity for institutional motion.
After having fun with modest success with Ethereum for six years, Two Prime says it’s shifting away to concentrate on BTC lending. The press launch reeled out a laundry checklist of causes behind the corporate’s resolution to ditch Ethereum for Bitcoin.
“ETH’s statistical trading behaviour, value proposition, and community culture have failed beyond a point that is worth engaing,” learn the assertion. “The risk-reward is simply unjustifiable at this point with BTC available as an alternative.”
Right out of the bat, Two Prime says ETH behaves like a memecoin slightly than a predictable asset. The report notes that ETH displayed “multi-standard deviation moves” following a de-correlation from Bitcoin in Q1 2025. The Ethereum-to-Bitcoin ratio has sunk to its five-year low given ETH’s underwhelming value efficiency in 2025.
A Raft Of Reasons Behind The Company’s Decision To Ditch ETH
Apart from its memecoin behaviour, Two Prime notes that the Ethereum value has not flashed any alerts of a rebound after the stoop. The agency notes that buyers should not shopping for the dip, demonstrating a scarcity of apathy for the most important altcoin.
Two Prime notes that Bitcoin ETF inflows have surpassed ETH by practically 24 instances, signaling a decline in institutional curiosity. Furthermore, the agency factors to a shoddy enterprise mannequin that enables Ethereum layer 2s to snag a bit of its monetization.
Rising competitors from Solana and different rising blockchains is taking a big chunk of Ethereum’s market share. Two Prime argues that Ethereum suffers from sturdy management and is a sufferer of its early success, however has failed to vary with the instances. An professional has warned that Ethereum is in danger if it doesn’t scale by 100X within the subsequent 5 years.
“The existing scale of the asset and the remaining upside of global adoption make BTC a far better risk-weighte investmen than ETH,” learn the assertion.
Two Prime’s resolution to dump its ETH holding has seen costs tumble by practically 2% for the reason that announcement. Previously, Galaxy Digital has offloaded a portion of its ETH holdings to build up SOL, adversely affecting value efficiency.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and rising applied sciences journalist with a knack for protecting needle-moving tales within the house. Aliyu delivers breaking information tales, regulatory updates, and insightful evaluation with depth and precision. When he is not poring over charts or following leads, Aliyu enjoys enjoying the bass guitar, lifting weights and operating marathons.
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