Bitwise: Ethereum is currently in "one of the most severe undervalued ranges in years"

On February 12th, analysts from the cryptocurrency asset management company Bitwise stated in a report that Ethereum has entered "one of the most significant undervaluation ranges in recent years." Based on CoinGecko data, as of the time of this writing, the ETH/BTC exchange rate has declined by 47% over the past 12 months. However, Andre Dragosch, the research director of Bitwise Europe, believes that Ethereum's pricing is "fundamentally incorrect" when compared to on-chain activity and adoption metrics. The increasing interest in artificial intelligence, meme coins, and RWA tokenization is regarded as the reason for Ethereum's underperformance. The report stated: "These fields benefit from lower transaction costs, while Ethereum's often congested and expensive network is at a disadvantage." Dragosch further pointed out that the rise of L2 scaling solutions "has spread activity across multiple ecosystems, restricting the value directly captured by the Ethereum base layer." What's more, ETH "is widely used as a trading pair throughout the cryptocurrency ecosystem, making it susceptible to continuous downward pressure when prices rise." Additionally, Bitwise pointed out that historical data indicates that Ethereum may "experience a rebound in February." In the past eight years, Ethereum has had positive returns relative to BTC in seven years.