Ethereum-Bitcoin Price Ratio Hits Lowest Level Since March 2021
The Ether-to-Bitcoin price ratio has fallen to 0.032, marking its lowest point since March 2021, as Bitcoin continues its upward trajectory, recently surpassing $97,700. This decline in the ratio reflects a significant shift in market dynamics, with Bitcoin gaining momentum while Ether has struggled to keep pace.
In the 24 hours leading up to Thursday afternoon in Asia, the ETH-BTC ratio on Binance decreased by 1.54%.
Since the beginning of 2024, this metric has dropped more than 40%. Bitcoin's price surge is attributed in part to the recent re-election of pro-crypto Republican candidate Donald Trump and the approval of U.S. spot Bitcoin exchange-traded funds (ETFs), which have attracted substantial institutional and retail interest.
While Bitcoin has seen a weekly increase of over 7%, Ether has experienced a downturn, losing 3.2% in value. Analysts suggest that Ethereum's dual role—competing as both a store of value against Bitcoin and a smart contract platform against Solana—has led to uncertainty among investors regarding its future value.
Solana, on the other hand, has gained traction this year, particularly with the rise of meme coins, surpassing Ethereum in key metrics like protocol fees and decentralized exchange (DEX) volumes.
Despite Ethereum's challenges, it remains the most economically active smart contract platform, attracting developers who may contribute to its recovery.
Regulatory concerns regarding its classification as a financial security in the U.S. have compounded Ethereum's difficulties since its Merge update in 2022.
