In his latest report, David Duong, global head of research at Coinbase, analyzed the reasons behind Ethereum's recent underperformance, attributing it to factors such as network activity and supply inflation. The report notes that after the deleveraging event in early August, broader market factors and issues related to capital flows also influenced Ethereum's price movement. Duong believes that the current market structure results in large amounts of capital being concentrated in illiquid cryptocurrencies like altcoins, which could otherwise have flowed into platforms like Ethereum within the wider cryptocurrency ecosystem. Moreover, the report emphasizes that retail investors in the cryptocurrency space drive market trends, and their focus on illiquid crypto assets may further affect Ethereum's performance. Duong added that for Ethereum to regain market favor, it would need a new catalyst to spark developer and investor interest. Additionally, growing attention from the market is being paid to Ethereum's comparison with other smart contract platforms, mainly due to a lack of new narratives and limited capital availability. The report concludes that many traditional participants may still lack understanding of Ethereum's supply plan and the utility of its smart contracts.