Since the launch of Ethereum in 2015, he has only surpassed Bitcoin on 15% of negotiation days, according to the data shared by analysts.
Glassnod’s main analyst, James Check, was published on X, noting that Ether has historically dragged compared to the main cryptocurrency in most market cycles.
Ethereum had a brief advantage over Bitcoin in its early years, in particular between mid-2015 and mid-2017, and again from the end of 2019 at the beginning of 2020.
Bitcoin maintains market domination while Ethereum has trouble keeping the pace
Since the beginning of 2020, Bitcoin has maintained domination.
The ETH / BTC ratio – A key measure comparing the value of Ether in Bitcoin – has now fell to a lower over five years of 0.018, the lowest level since December 2019. At the time, ETH was at a price of $ 125 while BTC was negotiated around $ 7,000.
On April 9, Ethereum dropped to around $ 1,400, losing almost 10% in 24 hours, according to Coingecko.
On the other hand, Bitcoin fell 6% to $ 75,000, but remains up almost 275% compared to its 2017 bull cycle, while ETH slipped below its previous 2018 summit.
The difference in performance has led to increasing concerns among supporters of Ethereum.
“I love Ethereum. However, it is time to face reality: Ethereum has (around) the same number of active addresses in the past 4 years,” said web3 researcher, Stacy Muur on X.
Although this metric shows stagnation on Ethereum Mainnet, others indicate growth in activity on layer 2 networks such as arbitrum and optimism, which help evolve Ethereum and now have a significant locked value, according to L2Beat data.
Meanwhile, Ethereum’s transaction costs have also dropped to their lowest level since the end of August, with an average of $ 0.41 per transfer.
The significant decline marks a contrast striking with the top of $ 15.21 seen in the past two years, indicating a potential optimistic feeling for long -term prices of Ethereum.
Historically, low transaction costs on the Ethereum network signal has reduced congestion, which means that fewer users are in competition to treat transactions.
VC blames the layer-2 for the decreasing investment call of Ether
Last week, the venture capital of Crypto Nic Carter of Castle Island Ventures highlighted two key problems undermining the value of Ether: the rise in power of layers of layer 2 (L2) and the emission of uncontrolled tokens.
He argued that the “eth L2 gourmet” siphon the value of the base layer of Ethereum while restoring little back.
He also criticized the acceptance by the Ethereum community of an excessive token creation, saying that “ETH was buried in an avalanche of its own tokens. Morta with his own hand ”.
Carter’s comments followed an equally brutal assessment of Quinn Thompson, founder of Lekker Capital, who said that Ethereum was “completely dead” as an investment.
Thompson cited the downward transaction activity, reduces user growth and the drop in network income as a sign that ETH no longer offers a case of solid investment, despite its usefulness as a blockchain platform.
In September 2024, Carter warned that the revenues of the costs of Ethereum had dropped by 99% over six months while L2S captured the activity and income of users without contributing to the base layer of Ethereum.
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