The crypto market witnessed a striking development as Ethereum (ETH) plunged to its lowest level against Bitcoin (BTC) in four years. On Wednesday, the ETH/BTC ratio dropped to 0.02993, marking a weakness not seen since 2020. This performance reflects Ethereum’s worst run since its launch in 2015. Experts attribute the decline to Bitcoin’s dominance and Ethereum’s scalability challenges.
Historic Drop in ETH/BTC Ratio
Ethereum’s decline against Bitcoin has intensified over recent months. Since the FTX collapse in November 2022, the ETH/BTC ratio has fallen 15%. The dip below 0.0300 has raised concerns among investors, with the last similar low recorded in January 2021. Over the past year, the ratio between the two assets has plummeted by 44%.
Meanwhile, Bitcoin surged from $98,000 to $105,000, partly influenced by China-based AI project DeepSeek. Ethereum, on the other hand, faced resistance at $3,200. Analysts suggest that Bitcoin’s strength as a store of value has widened the gap, while Solana’s scalable infrastructure has also pressured Ethereum’s market position.
Market Analysis and Expert Opinions
Bitwise Research Head Andre Dragosch attributes the ETH/BTC ratio decline to Bitcoin’s growing strength. He stated, “Ethereum struggles to compete with Bitcoin as a store of value and with Solana in scalability.” Dragosch also noted that Ethereum is experiencing a “middle-child syndrome,” leading investors to shift towards Bitcoin.
Market data further supports Bitcoin’s dominance. Despite Ethereum’s network upgrades, transaction speed and costs remain uncompetitive. Experts emphasize that Ethereum must accelerate technological advancements to regain its competitive edge. Meanwhile, Bitcoin continues to benefit from ETF approvals and institutional investments, reinforcing its price stability.
Stay tuned to Dey There for the latest updates on Bitcoin dominance, Ethereum’s performance, and major crypto market trends.
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