Despite the numerous upgrades and innovations being deployed, Ethereum prices are lagging behind Bitcoin (BTC) With a big margin. Reports reveal that ETH is suffering from an astounding 77% price crash against BTC. This is a reduction that is likely to be driven by a mix of technology, macros, and emotionally driven factors. In particular, Santiment, an on-chain analytics platform, is identifying and breaking down the key reasons behind these price struggles.
Ethereum price savings against Bitcoin
On April 11th, Santiment released details Report In Ethereum, its highlighting Almost 4 years shortage And the reason behind it. Ethereum was once respected as the cryptocurrency most likely to abdicate Bitcoin, but has been suffering recently Brutal price drop When measured directly against BTC.
According to Santiment’s on-chain data, Ethereum crashed Since December 2021, it has reached approximately 77% of Bitcoin. Although the dollar value of ETH has not completely collapsed, especially compared to other altcoins, the long-term BTC/ETH ratio is a scary picture for Ethereum holders.
In particular, there is Ethereum. Failed to recover Nearly $4,760 in November 2021. in contrast, Bitcoin has skyrocketed earlierregains much of its market advantage and outperforms ETH at almost every time.
This disparity has led many traders and former maximalists to compare ETH to “shit.” Worse, various mid-cap to low-cap altcoins already outperform Ethereum in short-term, medium-term and long-term time frames, making it even more embarrassing to the world’s second largest cryptocurrency by market capitalization. Based on Santiment’s report, ETH/BTC price ratio chart It is sufficient to cause doubt or uncertainty on its own Long term holders.
Behind the scenes of Ethereum’s price struggle
Beyond price action Market VolatilitySantimento reveals that there is a basic reason Ethereum performance is slow For many years. The key criticisms identified by analysts and traders include technical, sentimental and regulatory issues.
Ironically, Ethereum’s Layer 2 Solution It is one of the major drivers with low performance. L2 solutions such as Arbitrum, Optimism and Zksync cannibalize activities in the mainnet and receive investments from ETH while slugging investors’ attention.
Second, Ethereum appears to be struggling with a complex roadmap and communication, leading to investor disruption. Major updates such as The Merge Shanghai It is difficult for investors to understand, and ETH is found to be less accessible than BTC.
Third, users continue to be relatively annoyed by Ethereum High gas prices A slow rollout of key upgrades. This pushed them up to faster alternatives at a more affordable price, resulting in a significant reduction in adoption.
Another major reason for Ethereum’s crash against Bitcoin is continued regulatory concerns. Unlike Bitcoin, which has a more established legal precedent, Ethereum faces constant uncertainty about whether it is possible Security labeled.
Other points include ETH’s lack of investment appeal. Bitcoin maintains the title as a Stable digital goldEthereum appears to be caught up in between, with no clear or fascinating investment narrative. Additionally, new blockchains like Solana and Cardano attract a significant number of users with cheaper and faster solutions, ultimately pulling investments away from ETH.
The final reason Santiment has identified for the long-term price decline for Ethereum Increased sales pressure. The post-upgrade withdrawal of stakeholder ETH, compared to Bitcoin, limited growth and momentum, creating stable sell-side pressure.
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