An analyst at Coinbase said that in addition to the decline in network activity and token inflation, Ethereum's recent underperformance compared to its peers may also be related to broader market factors following the deleveraging event in early August. David Duong, head of global research at Coinbase, said in a report, "Ethereum network activity and supply inflation are significant factors in its underperformance, but we also believe that the current market structure influences price action." Many cryptocurrency investors are focusing on counterfeit products and other positions that are difficult to exit, potentially trapping funds that could have flowed to networks in the broader crypto ecosystem, such as Ethereum. "Currently, local investors in cryptocurrencies dominate the market, and this group may be concentrated in counterfeit products and other crypto positions that are more difficult to exit. We believe that for Ethereum to catch up, a new catalyst is needed to reignite the enthusiasm of developers and investors," he added. Duong also said that due to the lack of a new narrative and the limited availability of capital, the market is increasingly concerned about the comparison of Ethereum with other smart contract platforms. "In fact, we believe that many traditional players still cannot better understand the supply plan and smart contract utility of Ethereum."