Why ETH did not reach 2021 all time high in the 2024 bull run ?

BTC all time high during previous cycle was 69k in 2021, and now it went past that in 2024 and crossed 100k, where as a more technologically advanced project like ETH failed to touch the previous all time high. What went wrong ?

Note : The points are not my opinion. Here I am just documenting answer from chatgpt for my reference later.

Ethereum (ETH) failing to achieve its 2021 all-time high in the 2024 bull run can be attributed to several factors. These range from macroeconomic challenges to increased competition from emerging blockchain technologies. Let’s explore the key reasons:

1. Macroeconomic Conditions

• Regulatory Pressure: Heightened scrutiny from regulators globally, especially around staking and DeFi, dampened investor sentiment toward Ethereum.
• Market Liquidity: Compared to 2021, overall market conditions in 2024 showed less speculative excitement, with weaker retail and institutional participation.
• Interest Rates: A high-interest rate environment reduced the appeal of risk-on investments like cryptocurrencies.

2. Rising Competition

• Emerging Layer 1 Protocols: Newer Layer 1 blockchains like Sei, Aptos, Sui, and Kaspa have gained traction due to faster transactions, lower fees, and more scalable solutions. These alternatives drew developers and capital away from Ethereum.
• Addressing Ethereum’s Weaknesses: Competitors effectively tackled Ethereum’s issues, such as high gas fees and scalability limitations, presenting more appealing investment options.

3. Delayed Network Upgrades

Although Ethereum transitioned to Proof of Stake (PoS) and introduced Layer 2 scaling solutions, delays in major upgrades like Danksharding hindered scalability improvements. Competing blockchains with advanced scalability solutions stole the spotlight.

4. Shifts in Market Trends

• Decline in NFT Popularity: Ethereum’s 2021 rally was partially driven by the NFT boom, which was less vibrant in 2024.
• DeFi Saturation: While DeFi remains central to Ethereum, newer protocols and ecosystems reduced Ethereum’s dominance.

5. Layer 2 Ecosystem Impact

Ethereum's pivot toward Layer 2 solutions (e.g., Arbitrum, Optimism) shifted transaction activity to these networks, potentially reducing demand for ETH on the main chain.

6. Lack of Compelling Catalysts

In 2021, Ethereum benefited from narratives like the NFT craze and anticipation of the Proof of Stake transition. In 2024, the absence of similarly strong narratives limited its upward momentum.

7. Institutional Behavior

Institutions and whales might have concentrated on Bitcoin during the 2024 bull run, especially with the approval of Bitcoin ETFs and its growing narrative as digital gold.

8. Broader Market Trends

The 2024 bull run may have been driven more by Bitcoin dominance or altcoin narratives outside Ethereum’s ecosystem, diverting capital away from ETH.

Conclusion

Ethereum remains a cornerstone of the crypto ecosystem, but its price trajectory in 2024 reflects a shift in narratives, competition, and market conditions. While it may not have reached its previous highs, its utility and influence on the broader blockchain space remain significant.