Why Ethereum Is The Best “Contrarian Bet”

Hougan acknowledged Ethereum’s unique position within the crypto market. He describes Ethereum as “the asset that people love to hate; it’s kind of the middle child of crypto.” While Bitcoin maintains its status as the original cryptocurrency and a store of value, newer blockchains capture attention with promises of superior performance and innovative features. Ethereum, meanwhile, is often criticized for issues like high fees and the migration of activity to Layer-2’s, leading some to view it as outdated technology struggling to keep pace with its competitors.

However, Hougan challenges this narrative by emphasizing Ethereum’s foundational role in some of the most critical and rapidly growing areas of the crypto industry. “When you step back and look at it, what are the killer apps of crypto outside of Bitcoin? They are things like stablecoins, DeFi [decentralized finance], and tokenization,” he notes. Despite the emergence of alternative platforms, Ethereum remains the leading blockchain supporting these applications. It is the primary choice for developers and institutions. “If you’re a large traditional financial player looking to build on a public blockchain what blockchain are you going to choose most likely? You’re going to choose Ethereum,” Hougan claims.

The Bitwise CIO attributes Ethereum’s underperformance to a transitional phase in its development. “I think Ethereum has sort of passed over this year because it’s going through this complex teenage adjustment in its architecture,” he explained. This “teenage adjustment” refers to Ethereum’s ongoing upgrades.