1 Reason why ETH perform worst than BTC

$Ethereum (ETH.CC)$
One fundamental reason Ethereum (ETH) tends to underperform Bitcoin (BTC) is scarcity. Bitcoin has a hard cap of 21 million coins, ensuring a finite supply. This scarcity inherently supports its value over time, akin to precious metals like gold.

In contrast, Ethereum does not have a capped supply. While Ethereum 2.0 introduced mechanisms to reduce inflation, such as burning a portion of transaction fees, the overall supply of Ether can still increase indefinitely. This potential for continuous minting can create downward pressure on its price compared to Bitcoin's capped supply.

Moreover, Ethereum's ecosystem and functionality contribute to its greater circulation. The network supports a wide range of decentralized applications (dApps), Layer 1 (L1) and Layer 2 (L2) solutions, and staking mechanisms. Staking, particularly with Ethereum 2.0 and liquid staking options, allows more Ether to enter circulation. Users who stake their Ether earn rewards, but these rewards add to the circulating supply, potentially diluting the value of existing Ether.

In summary, while Ethereum offers extensive utility and innovation within the blockchain space, its unlimited supply and the increased circulation from staking activities and applications built on its network contribute to its underperformance relative to Bitcoin. Bitcoin's fixed supply gives it an edge in scarcity, which supports its value over time.