Market Veteran Raoul Pal Predicts Ethereum Comeback Against Bitcoin with Donald Trump’s Victory

Key takeaways

• Crypto market expert Raoul Pal believes Trump could create a more favorable regulatory environment, which might help Ethereum outperform Bitcoin.
• Pal compares Ethereum to Microsoft in its early days, saying its reliability and widespread adoption make it a top choice for traditional finance institutions.
• Pal acknowledges that while Ethereum has strengths, it faces competition from newer, faster, and cheaper blockchains like Solana and Sui. Frequently adds crypto companies to its warning list to caution the public, emphasizing strict adherence to local financial regulations.

Raoul Pal Predicts Trump's Victory Could Propel Ethereum Ahead of Bitcoin

Raoul Pal, a market expert and CEO of Real Vision, recently shared his view that Donald Trump's victory could boost Ethereum more than Bitcoin.

Pal's comments come after a stretch where Ethereum has lagged behind Bitcoin. For the past five months, Ethereum has underperformed against BTC. Right now, ETH stands at 0.03829 BTC, marking a 29% drop since the beginning of the year.

Bitcoin has performed better overall since the third quarter of 2023. However, ETH seems to be catching up lately. In November, Ethereum rose 7.06% against Bitcoin even while BTC recently hit an all-time high.

Earlier this morning, Pal shared a new post in which he said that Trump's victory could be a chance for Ethereum to flip the tides. Pal also mentioned two main reasons why the new administration might help ETH to start doing better than Bitcoin.

He mentioned two reasons the new administration might help ETH perform better than Bitcoin. The first reason Pal highlighted is the potential for utility tokens in decentralized finance (DeFi) to start offering yields or rewards tied directly to the network they operate on.

Pal believes that, under Trump's leadership, changes in the regulatory landscape could create a more favorable environment for these tokens.

This new framework might enhance the growth of Ethereum's DeFi ecosystem, allowing users to earn more rewards through staking or other yield-generating activities. Pal sees a shift that could unlock more financial opportunities within Ethereum's network, making it more attractive to investors and users alike.

Ethereum hosts the most DeFi applications, giving it a major advantage. If clearer regulations allow these financial innovations to thrive, Ethereum could benefit more than other blockchains.

The growth in DeFi could lead to a rise in Ethereum's network value. As its value increases, so could its price, potentially helping Ethereum grow faster than Bitcoin.

The second reason Pal mentioned is Ethereum's strong reputation as a reliable and widely used blockchain. This makes it a top choice for traditional finance (TradFi) institutions.

These institutions are likely looking to build larger blockchain-based applications. Therefore, with Trump's election expected to bring crypto-friendly regulations, Pal believes Ethereum will be the go-to platform for these TradFi projects.

Ether Faces Rising Competition from Solana and Sui

Pal compares Ethereum's current position to Microsoft's role in the early days of web enterprise solutions. Just as Microsoft was trusted and familiar to businesses, Ethereum has the same qualities. Its credibility makes it a safe" choice for institutions looking to adopt blockchain technology.

While Pal is hopeful about Ethereum's future, he acknowledges that it might not be the biggest winner under Trump's administration. Other blockchains, like Solana (SOL) and Sui (SUI), are gaining popularity, especially with users who want lower transaction fees.

Pal pointed out that Ethereum might struggle against newer projects like Sui, which is still in its early, rapid growth stage. He also noted that Solana is in a better position to outperform Ethereum, given its speed and lower costs.

Market experts like Matt Hougan from Bitwise and analyst Alex Kruger have expressed similar views on regulatory clarity. They pointed out that while Bitcoin had some regulatory certainty under the Biden administration, Ethereum and other altcoins faced more confusion and risk.

With Trump's victory, there's potential for a more supportive regulatory environment for altcoins. This shift could ease concerns for institutions that were hesitant to invest in altcoins due to unclear regulations.

As regulations become clearer, these institutions might feel more confident entering the market.

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