Ethereum has notably underperformed this cycle, particularly as Solana gains traction through the memecoin frenzy and events like Trump’s official memecoin launch on Solana instead of Ethereum.
Ethereum ETH $1 588 24h volatility: 0.1% Market cap: $191.67 B Vol. 24h: $5.14 B has hit a striking low against Bitcoin BTC $84 513 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $9.23 B , sinking to levels unseen since March 2021. The value of one Ether (ETH) dropped to 0.03 BTC on Sunday, a steep 50% decline from its standing a year ago, according to CoinGecko. In stark contrast, Bitcoin has surged ahead, outperforming Ether and other assets alike, as the cryptocurrency hit a new all-time high at $109K on early Monday.
Source: CoinGecko
The slump in Ethereum’s value comes as Bitcoin’s yearly return climbs to 160%. Bitcoin has gained 16.70% in the last week, eclipsing Ethereum’s modest 7.50% gains in the same period. Investors are increasingly choosing Bitcoin, shifting the balance of power between the two digital assets.
Solana’s Memecoin Frenzy Outspaces Ethereum
Ethereum’s appeal, often tied to its role as the first blockchain to introduce smart contracts and decentralized finance (DeFi) applications, has struggled to compete in the face of rising alternatives. Notably, Solana has captured attention, fueled by memecoin excitement and events like Donald Trump’s official memecoin launch on Solana instead of Ethereum.
“Ethereum has notably underperformed this cycle, particularly as Solana gains traction through the memecoin frenzy and events like Trump’s official memecoin launch on Solana instead of Ethereum,” Min Jung, an investment analyst at Presto Research, told CoinDesk in a statement.
Despite challenges, Ethereum has not lost its institutional appeal. World Liberty Financial, a crypto lending platform endorsed by Trump and his sons, has increased Ether holdings. Jung highlighted that Ethereum’s status as the only cryptocurrency besides Bitcoin with an ETF ensures its continued relevance in the eyes of large-scale investors.
Ethereum’s Taker Ratio below 1.00
Ethereum’s Taker Buy Sell Ratio, a metric that evaluates trading sentiment, currently sits at 0.9723, indicating a slight tilt toward seller dominance, according to CryptoQuant. With a spot price at $3,283.95, reflecting a 2.26% uptick, the cryptocurrency’s fluctuating performance continues to keep traders wary of leveraged positions.
Source: CryptoQuant
Bitcoin is not just outshining Ethereum but also overshadowing traditional investments like gold. One Bitcoin now commands the equivalent of 40 ounces of gold, with Bitcoin’s share of the gold market cap reaching 11.4%. This highlights a growing investor preference for the digital currency as a store of value.
Ethereum, on the other hand, has struggled to maintain momentum. Its price trajectory, which once peaked near $4,250, now fluctuates with persistent volatility. Historical lows like March 2023 marked bearish trends, with the Taker Buy Sell Ratio consistently trending below 1.00 — a signal that traders remain cautious.
From mid-2024, Ethereum did show hints of recovery, gaining traction alongside a gradual rise in the buy-sell ratio. However, the persistent sub-1.00 ratio reflects lingering market skepticism. Observers suggest that a shift above 1.00 would indicate renewed confidence and a potential bullish breakout for Ethereum.
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