The ETH/BTC ratio has decreased by 1.54% in the past 24 hours and is currently trading at 0.032. Since the beginning of 2024, this index has decreased by more than 40%.
This decline has started to accelerate since July, which is attributed to the remarkable breakthrough of Bitcoin before and after Donald Trump's re-election as US President. The world's largest cryptocurrency has continuously set new all-time high prices in the past few weeks.
Today, Bitcoin has for the first time surpassed the $97,000 mark, in the context of the market expecting the price of the world's largest cryptocurrency to exceed $100,000 before the end of the year.
Prior to the election, the US approval of spot Bitcoin ETFs has also driven the rise of Bitcoin throughout 2024. Rachael Lucas from BTCMarkets shared that "This has attracted significant attention from institutions and retail investors, reinforcing Bitcoin's position as a digital gold".
On the contrary, Ether has been less effective, although the cryptocurrency market in general has benefited from Trump's victory. While Bitcoin has increased by more than 7% in the past week, Ether has decreased by 3.2%.
"Ethereum is currently in a difficult position, having to compete on two main fronts: as a store of value asset against Bitcoin and as a smart contract platform competing with Solana," analyst Steven Zheng commented. "This makes investors ambiguous about its value, at least in the short term".
Solana has risen strongly this year, becoming the network behind the prolonged memecoin craze. On Monday, over 94% of new tokens listed on decentralized exchanges (DEXs) were launched on Solana. Solana has also surpassed Ethereum in key metrics such as protocol fees and trading volume on DEXs.
Lucas added that Ethereum has struggled to maintain momentum since The Merge upgrade in 2022, facing legal uncertainties related to the possibility of being classified as a security in the US.
However, Zheng said the Ethereum blockchain remains the most robust smart contract platform currently, continuing to attract developers to create new applications.
"Overall, Ethereum's underperformance reflects a broader trend towards Bitcoin," Lucas concluded. "If Bitcoin's uptrend stalls or market sentiment towards Ethereum improves due to technical upgrades or renewed interest in its applications, the ETH/BTC ratio could recover."
Peter Chung, head of research at Presto Research, believes Ethereum's underperformance so far does not necessarily mean this trend will continue in the coming years. "As a more crypto-friendly environment is established under the Trump administration, many Web3 projects are likely to launch on various blockchains," Chung said.
"The blockchain industry is still in its early stages, so it would be premature to write off one chain in favor of another, especially considering the track record that the Ethereum community has demonstrated over the years and the intellectual resources that exist in that community," he added.
You can view the ETH price here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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