Ethereum-Bitcoin exchange rate hits lowest level since March 2021

The Ether to Bitcoin price ratio has fallen 0.032that marks its lowest point since March 2021 as Bitcoin continues its upward trajectory, recently over $97,700. This drop in the ratio reflects a significant shift in market dynamics, with Bitcoin gaining momentum while Ether has struggled to keep pace.

In the 24 hours leading up to Thursday afternoon in Asia, the ETH-BTC ratio on Binance fell by 1.54%.

Since the beginning of 2024, this metric has dropped more than 40%. Bitcoin’s price rise is partly attributed to the recent re-election of pro-crypto Republican candidate Donald Trump and the approval of US spot Bitcoin exchange-traded funds (ETFs), which have attracted significant institutional and retail interest.

While Bitcoin has seen a weekly increase of over 7%, Ether has experienced a downturn, losing 3.2% in value. Analysts suggest that Ethereum’s dual role – competing as both a store of value against Bitcoin and a smart contract platform against Solana – has led to uncertainty among investors about its future value.

Solana, on the other hand, has gained traction this year, especially with the rise of meme coins, surpass Ethereum in key metrics like protocol fees and decentralized exchange (DEX) volumes.

Despite Ethereum’s challenges, it remains the most economically active smart contract platform, attracting developers who can contribute to the recovery.

Regulatory concerns regarding its classification as a financial security in the US have compounded Ethereum’s difficulties since the 2022 merger update.