The entire crypto market is reeling, but Ethereum is particularly disappointing investors. ETH continues to lose ground against Bitcoin. Did Vitalik gamble and lose?
There was a time when optimistic crypto investors speculated that Ethereum could overtake Bitcoin due to its technical advantages: the “flippening.” But the Ether price has been suffering greater losses than its major rival for months.
A direct comparison reveals that 1 ETH currently only gives you 0.0217 BTC. This puts the second-largest cryptocurrency against Bitcoin very close to a five-year low. The last time the ETH/BTC ratio was this bad was in May 2020.
While Bitcoin is trading at $83,100 and boasts a market capitalization of $1.65 trillion, Ether is trading at $1,805 and is valued at just $217 billion – less than one-seventh of its value.
One reason for this is weak demand from TradFi investors. Since trading began in July, Ethereum ETFs have recorded net inflows of $2.37 billion. By comparison, Bitcoin ETFs account for over $36 billion.
At the same time, more and more Ethereum whales are giving up. According to Lookonchain, a major ETH investor from 2017 recently sold all of his remaining 2,001 ETH, making a fiat profit of $8.66 million.
The switch to the energy-efficient Proof-of-Stake process, championed by Ethereum founder Vitalik Buterin, among others, took place on September 15, 2022. Since this so-called merge, ETH has lost almost 75 percent against BTC.
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