Analysts Explain Ethereum's Decline Relative to Bitcoin

CryptoQuant Analysts have reported that Ethereum has underperformed Bitcoin by up to 44% since Ethereum's transition to a proof-of-stake network, known as "The Merge," nearly two years ago.

Despite the approval of Ethereum spot ETFs in the U.S. in July, Ethereum's performance has continued to lag, with the ETH/BTC price ratio reaching its lowest level since April 2021.

Ethereum has also underperformed compared to other tokens such as SOL and BNB, falling 53% and 18%, respectively, since the Merge.

According to the analysts, this underperformance may be attributed to weaker network activity and declining transaction fees, compounded by an increasing total supply of Ethereum.

They suggest that Ethereum could face further declines relative to Bitcoin, with predictions indicating that Ethereum may need to fall to approximately 0.02 BTC to enter undervaluation territory.

Source: The Block