**Ethereum Loses Competition to Bitcoin: What's Going On?**

- Since Ethereum switched from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on September 15, 2022, its performance relative to Bitcoin has declined drastically. ETH is now at its lowest level since April 2021 with ETH/BTC price at 0.0425.

- According to CryptoQuant, some of the main factors causing this decline are inflationary supply dynamics and weaker network activity compared to Bitcoin.

- Despite the approval of an Ethereum ETF in the US, ETH's performance continues to lag behind. ETH's spot trading volume, which was initially 1.6 times BTC, has now dropped to 0.76.

- The Dencun upgrade that introduced blobs data also had an impact on lowering transaction fees and increasing ETH supply to 120.323 million.

- Bitcoin transactions hit a record high this year, while Ethereum actually dropped drastically.

- Analysts predict that ETH could continue to decline until it is considered undervalued if the ETH/BTC Market Value to Realized Value ratio falls to 0.45.

What do you think? Let's discuss in the comments column! 🚀