The price of Ethereum (ETH) is currently at a 40-month low in comparison to Bitcoin (BTC), indicating that it is having difficulty keeping up with BTC’s remarkable advances in 2024. Although Bitcoin (BTC) has skyrocketed by almost 36% this year, Ethereum (ETH) has only risen by about 0.02% since January 1.
Compared to Bitcoin’s 15% decline in value over the last 90 days, Ether’s 34% decline is a huge deficit. Also, in the past three months, the Ethereum to Bitcoin ratio has dropped over 22%, reaching a multi-year low of 0.04057 on September 11. Weak interest in Ether relative to Bitcoin is reflected in this precipitous fall.
To put this into perspective, since the Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs on January 10, they have surpassed Ethereum spot ETFs.
Bitcoin ETFs Continues To Outperform Ethereum ETFs
According to the on-chain statistics provided by Glassnode, Bitcoin exchange-traded funds (ETFs) account for 8% of spot volume and have a far greater influence on the price of Bitcoin than Ethereum ETFs, which only account for 1% of spot volume. Because of this significant disparity, it is clear that Ethereum exchange-traded funds (ETFs) are not as popular as Bitcoin ETFs.
Additionally, Ether’s poor performance in comparison to Bitcoin has been a significant barrier for ETH. This is in addition to the fact that Bitcoin is becoming increasingly dominant. As a result of Bitcoin’s dominance in the market, the cryptocurrency achieved a 40-month high of 58% on August 5. This pattern persisted until the year 2024. This increase makes it abundantly clear that Bitcoin is outperforming other cryptocurrencies, such as Ether, which are currently on the market.
Dominance by Bitcoin is a measure of asset strength and investor sentiment that compares the market cap of BTC to the whole crypto market. The relative value of ETH will continue to decline relative to Bitcoin as long as Bitcoin maintains its current level of dominance. This pattern may indicate that investors are beginning to feel more comfortable investing in Bitcoin rather than Ether.
One useful indicator of blockchain activity and token demand is the number of active addresses on the Ethereum network. There has been a considerable decline from 686,350 in May 2021 to the current 30-day average of 430,250 daily active addresses, a decline of 7.7 percent from three months earlier. This drop indicates that fewer people are using the Ethereum layer-1 blockchain and that fewer people are buying Ether.
In addition, tracking unique active wallets (UAWs) gives information about how the network is using decentralized applications (DApps). The number of active Ethereum DApp addresses has decreased by 19% in the last month. Alternatively, competing blockchains such as Tron and Solana have seen massive growth, with unique active wallets (UAWs) jumping by 343 percent and 257 percent, respectively. If Ether wants to break $2,400, the network needs a growth spurt, more transactions, and more DApp activity.
You should not use this material as investing or legal advice; it is intended for informative reasons.
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