Key Points
- Investment advisor Two Prime has completely exited Ethereum due to its “memecoin-like” behavior and unpredictable risk.
- Cardano has surpassed Ethereum in core developer activity, challenging traditional market narratives.
Two Prime, a SEC-registered investment advisor, has announced its complete exit from Ethereum (ETH).
The firm cited the asset’s “memecoin-like” behavior, lagging price performance, and deteriorating value proposition as the main reasons for the exit.
Two Prime’s Exit from Ethereum
Two Prime had been actively participating in ETH markets for years and was one of the largest global lenders for BTC and ETH-backed loans.
However, it has now concluded that Ethereum no longer offers a viable risk-reward profile for serious asset management.
The firm plans to shift its full focus to Bitcoin (BTC).
Two Prime stated that Ethereum’s core trading behavior has changed significantly, making it difficult to manage from a risk perspective.
The firm believes that ETH has decoupled from Bitcoin and now exhibits extreme tail risk, mirroring the erratic volatility typical of memecoins.
Bitcoin’s Stability and Cardano’s Rise
Bitcoin maintained relatively stable behavior during Q1 2025’s market turbulence, whereas Ethereum experienced several multi-standard deviation swings, signaling structural instability.
Bitcoin ETF inflows have also outperformed Ethereum’s by nearly 24 times.
In addition to Two Prime’s exit from Ethereum, recent findings have revealed that Cardano has now surpassed Ethereum in core developer activity.
Despite these developments, Bitcoin has sustained its dominance with steady gains amidst market volatility.
At the time of writing, Ethereum was trading at $1,819.39.
