ETH/BTC, a measure of Ethereum (ETH) price in Bitcoin (BTC), has plummeted to levels not seen since April 2021. CryptoQuant experts show how Ethereum (ETH) has lost its dominance in terms of network activity, tokenomics, and more.
CryptoQuant Reports ETH/BTC Price Drops to 40-Month Low
The ETH/BTC ratio, a critical metric for the global blockchain ecosystem, has fallen to 0.0425. This is the lowest level for the metric since April 2021. Such calculations were presented by CryptoQuant, a major blockchain analytics team, in a recent X thread.
Thus, Ethereum (ETH) has lost 44% of its value against the largest cryptocurrency since the Merge transition in September 2022.
According to experts at CryptoQuant, ETH's painful results should be attributed to a combination of factors. Launched in July 2024, the Ethereum Spot ETF failed to replicate Bitcoin's success due to a lack of liquidity and market uncertainty.
The Ethereum (ETH) network has seen very low transaction activity, accompanied by a sharp decline in generated fees. This dynamic has been accelerated by the launch of L2 narration and the activation of the Dencun update.
Is Ethereum (ETH) in trouble?
Additionally, some other blockchain usage metrics are higher in Bitcoin (BTC) than Ethereum (ETH) due to the popularity of inscriptions, runes, L2, etc.
However, the CryptoQuant team suggests that the worst is yet to come for the second cryptocurrency:
Ethereum could fall even lower against Bitcoin as ETH is still above undervaluation territory. We estimate that ETH would need to fall to around 0.02 against Bitcoin, which is a 50% decline, to enter undervaluation territory.
The report says that after Ethereum (ETH) lost its status as a deflationary currency, its monetary structure no longer looks so attractive to investors.
How coated Earlier, U.Today's Justin Bones from Cyber Capital highlighted that the “L2 lobby” is currently dragging Ethereum down, making it irrelevant.