A significant development has emerged in the cryptocurrency market. Ether (ETH) has plummeted to its lowest level against Bitcoin (BTC) 
$111,562 in four years. On Wednesday, the ETH/BTC ratio fell to 0.02993, marking a level not seen since 2020. This decline reflects Ethereum’s worst performance since its inception in 2015. Experts emphasize that the drop is attributed to Bitcoin’s robust surge and Ethereum’s scalability issues.
Historic Decline in the ETH/BTC Ratio
The loss of value for Ether against Bitcoin has noticeably increased in recent months. Since the collapse of FTX in November 2022, the ETH/BTC ratio has decreased by 15%. The ratio falling below 0.0300 has triggered concerns among traders. The previous low was recorded in January 2021. Over the past year, the ratio between the two assets has declined by 44%.
Bitcoin surged from $98,000 to $105,000, influenced by the China-based AI project DeepSeek. In contrast, Ethereum 
$2,654 faces resistance around the $3,200 mark. Analysts note that Bitcoin’s strengthening role as a “store of value” has left Ethereum lagging behind. Moreover, competitors like Solana 
$180 possess scalable infrastructure that negatively impacts Ethereum’s performance.
Market Analysis and Expert Opinions
Andre Dragosch, the head of Bitwise Research, stated that the primary reason for the decline in the ETH/BTC ratio is Bitcoin’s strength. He mentioned that Ether cannot compete with Bitcoin in the store of value sector or with Solana in terms of scalability. Dragosch added that Ethereum is experiencing a “middle child syndrome,” driving investors towards Bitcoin.
Market data indicates Bitcoin’s dominance remains strong. Despite Ethereum’s network upgrades, its transaction speed and costs lag behind competitors. Experts highlight that Ethereum needs to enhance its competitiveness through technological improvements. Meanwhile, Bitcoin’s approval of ETFs and institutional investments bolster its price positively.
