What Makes Ethereum Weak?: It Has Fallen 45 Percent Against Bitcoin Since the Transition!
Analysts at the on-chain analysis platform CryptoQuant focused on the factor that weakened Ethereum against Bitcoin.
According to data from CryptoQuant analysts, Ethereum (ETH) has underperformed Bitcoin (BTC) by 44% since the date it switched to the proof-of-stake (PoS) system.
This major update of Ethereum, called “Merge,” aimed to make the network more environmentally friendly and efficient. However, according to analysts, Ethereum continued to perform poorly after this transition and remained in the shadow of Bitcoin.
CryptoQuant analysts stated that despite the approval of Ethereum spot exchange-traded funds (ETFs) in the US on July 23, Ethereum could not gain momentum against Bitcoin.
Ethereum at its Lowest Since April 2021
Currently, the ETH/BTC pair is trading at 0.0425, its lowest level since April 2021. This shows that Ethereum is losing strength not only against Bitcoin, but also against other altcoins such as Solana and BNB. In particular, there was a 53% loss of value against Solana and 18% against BNB, he added.
Analysts suggested that Ethereum could lose even more value compared to Bitcoin. Stating that Ethereum is still overvalued, experts stated that ETH should fall by about 50% against BTC and fall to 0.02 levels, so that it can be considered truly “undervalued.”
As for why Ethereum is performing poorly compared to Bitcoin, CryptoQuant drew attention to the network’s weak transaction activity. It has been reported that transaction fees on Ethereum’s network have dropped significantly compared to Bitcoin, especially after the Dencun update.
