Because the launch of Ethereum in 2015, it has solely outperformed Bitcoin on 15% of buying and selling days, in accordance with information shared by analysts.
Glassnode’s lead analyst James Verify posted on X, noting that Ether has traditionally lagged behind the main cryptocurrency in most market cycles.
Ethereum had a quick edge over Bitcoin in its early years, notably between mid-2015 and mid-2017, and once more in late 2019 to early 2020.
Bitcoin Maintains Market Dominance as Ethereum Struggles to Preserve Tempo
Since early 2020, Bitcoin has maintained dominance.
The ETH/BTC ratio—a key metric evaluating Ether’s worth to Bitcoin’s—has now dropped to a five-year low of 0.018, the bottom stage since December 2019. At the moment, ETH was priced at $125 whereas BTC traded round $7,000.
On April 9, Ethereum dropped additional to round $1,400, shedding practically 10% in 24 hours, in accordance with CoinGecko.
In distinction, Bitcoin fell 6% to $75,000 however stays up practically 275% from its 2017 bull cycle excessive, whereas ETH has slipped under its earlier 2018 peak.
The hole in efficiency has led to rising considerations amongst Ethereum supporters.
“I really like Ethereum. Nevertheless, it’s time to face actuality: Ethereum has had [around] the identical variety of lively addresses for the previous 4 years,” mentioned Web3 researcher Stacy Muur on X.
I really like Ethereum.
Nevertheless, it's time to face actuality:
Ethereum has had ~ the identical variety of lively addresses for the previous 4 years.
This isn't the "effectivity zone," I'm afraid.
That is stagnation. pic.twitter.com/qg9TaeVasT— Stacy Muur (@stacy_muur) April 8, 2025
Whereas this metric exhibits stagnation on Ethereum’s mainnet, others level to development in exercise on layer-2 networks equivalent to Arbitrum and Optimism, that are serving to to scale Ethereum and now maintain important worth locked, per information from L2beat.
In the meantime, Ethereum’s transaction charges have additionally plummeted to their lowest stage since late August, averaging simply $0.41 per switch.
The numerous lower marks a stark distinction to the $15.21 excessive seen previously two years, indicating potential bullish sentiment for Ethereum’s long-term worth outlook.
Traditionally, low transaction charges on the Ethereum community sign decreased congestion, which means fewer customers are competing to course of transactions.
VC Blames Layer-2s for Ether’s Waning Funding Enchantment
Final week, crypto enterprise capitalist Nic Carter of Fort Island Ventures pointed to 2 key points undermining Ether’s worth: the rise of layer-2 (L2) scaling networks and unchecked token issuance.
He argued that “grasping Eth L2s” are siphoning off worth from Ethereum’s base layer whereas giving little again.
He additionally criticized the Ethereum neighborhood’s acceptance of extreme token creation, claiming that “ETH was buried in an avalanche of its personal tokens. Died by its personal hand.”
Carter’s feedback adopted a equally stark evaluation from Quinn Thompson, founding father of Lekker Capital, who declared that Ethereum is “fully useless” as an funding.
Thompson cited declining transaction exercise, decreased consumer development, and falling community revenues as indicators that ETH not presents a robust funding case, regardless of its utility as a blockchain platform.
The #1 explanation for that is grasping eth L2s siphoning worth from the L1 and the social consensus that extra token creation was A-OK. Eth was buried in an avalanche of its personal tokens. Died by its personal hand.
— nic carter (@nic__carter) March 28, 2025
Again in September 2024, Carter warned that Ethereum’s charge income had plummeted by 99% over six months as L2s captured consumer exercise and income with out contributing to Ethereum’s base layer.
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