Ethereum’s ongoing decline vis-a-vis Bitcoin has led to the ETH/BTC ratio slipping beneath 0.04 BTC after more than three years. Despite high expectations of Ethereum potentially outshining Bitcoin, the reality paints a different picture.
Back in the ICO surge of mid-2017, Ethereum came close to overtaking Bitcoin in market cap but ultimately fell short. Subsequent spikes in early 2018 and 2021, driven by DeFi and NFTs, were also unable to propel Ethereum past Bitcoin’s dominant position effectively.
Following Ethereum’s switch from proof-of-work to proof-of-stake in September 2022, the ETH/BTC pair has plummeted by 53%, as noted by Alex Thorn, the head of research at Galaxy Digital. Recent setbacks, such as lackluster ETF performance and substantial outflows, have added pressure on Ethereum’s value. Noteworthy analysts like Tuur Demeester, a Bitcoin proponent, are even envisioning a scenario where Ether could drop to 0.03 BTC.
The long-awaited “flippening” where Ethereum surpasses Bitcoin seems to be slipping further away. Stakeholders and market-watchers are keenly observing crypto market developments to forecast the potential impacts on both Ethereum and Bitcoin in the long run.
