In November, the price ratio of Ethereum (ETH) to Bitcoin (BTC) fell to its lowest level since March 2021 as the price of Bitcoin continued to rise daily, reaching historic highs. On November 21st, the ETH-BTC ratio fell 1.54% to 0.032 (3.2%), according to TradingView data. Since the beginning of 2024, the indicator has fallen by more than 40%.
This decline can be attributed to the rise in Bitcoin prices that occurred before and after the re-election of pro-crypto Republican candidate Donald Trump. Despite Bitcoin’s continuous growth, Ethereum is not out of the race. It remains competitive in two areas: as a store of value and as a smart contract platform.
Ethereum’s uncertainty in maintaining its value has led to increased competition with Solana, which has become a popular network for memecoins. Ethereum has struggled to maintain its momentum since the 2022 Merge update, mainly due to regulatory uncertainty in the US regarding it as a potential security.
However, Ethereum still remains the most economically active smart contract platform, attracting developers to build new applications. Analysts believe that Ethereum’s performance will improve as a more crypto-friendly environment may develop under the Trump administration, leading to the launch of more Web3 projects on various chains.
Thus, Ethereum may have an opportunity to catch up in the coming years.
Source
<p>The post Is Ethereum Losing Ground to Bitcoin? first appeared on CoinBuzzFeed.</p>
