TLDR:
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Trading firm Two Prime exits Ethereum, citing poor risk-reward and meme-like behavior.
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ETH is down 51% YTD, while BTC nears all-time highs.
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Firm says Solana is now more compelling for developers.
A Harsh Exit from ETH
Algorithmic trading firm Two Prime has dropped all Ethereum exposure, citing its volatility, unclear direction, and poor institutional appeal. The firm, which lent $1.5 billion in the past 15 months against BTC and ETH, said Ethereum now trades like a meme coin.
ETH’s Institutional Decline
Two Prime emphasized Ethereum’s post-2024 election slump and declining ETF inflows as evidence of its fading reputation among serious investors. ETH ETFs manage just $6.68 billion compared to BTC’s $115 billion.
Solana, Layer-2s, and Lost Focus
The firm also criticized Ethereum’s fragmentation, where Layer-2s cannibalize value from the mainnet. In contrast, it praised Solana’s simplicity, UX, and performance.
Bitcoin as the Winner
BTC’s resilience, regulatory traction via ETFs, and predictable behavior were cited as key reasons for the pivot. CEO Alexander Blume declared: “Two Prime is done with ETH.”
A Leadership Wake-Up Call
The firm concluded that Ethereum’s leadership is out of touch. “Everyone but them seems to know that,” the statement read.
