Why Is Ethereum Performing Poorly Compared to Bitcoin? Is There Hope for ETH? Experts Explain!

Bitcoin is performing incredibly well, racing from record to record. At this point, the price has climbed above $97,000, while Ethereum is not performing as well as BTC.

The ETH/BTC ratio also fell to its lowest level since March 2021 as Bitcoin continued to reach new all-time highs. The ETH/BTC ratio fell by about 1.54% today to 0.032, but rose back up to 0.34 with the rise in ETH.

Despite the market-wide recovery that came with Trumps victory, Ethereum showed a relatively lower performance, while analysts evaluated the latest situation in ETH.

Market analyst Steven Zheng said that Ethereum competes against cryptocurrencies in many aspects and that these affect ETHs performance.

Ethereum is in a weird situation right now where its competing on two big fronts.

It fights against Bitcoin as a store of value and against Solana as a smart contract platform for developers.

This has left investors unsure about ETHs value proposition, at least in the short term.

Zheng noted that Solana has particularly stood out this year thanks to memecoins, with 94% of new tokens issued on decentralized exchanges being created on the Solana network. The analyst also added that Solana has surpassed Ethereum in key metrics such as transaction fees and DEX volumes.

BTCMarkets analyst Rachael Lucas attributed ETHs lackluster performance to efforts to qualify it as a security in the US.

“Overall, Ethereum‘s underperformance points to a broader centralization trend in Bitcoin. If Bitcoin’s rally loses momentum or if Ethereums market sentiment improves, perhaps due to technical upgrades or renewed interest in its use cases, ETH has the potential to experience a recovery,” Lucas said.

Finally, Peter Chung, head of research at Presto Research, also shared his assessment of ETH.

Chung said that ETHs poor performance so far does not mean that it will continue in the coming years. “As a more crypto-friendly environment emerges under the Trump administration, more Web3 projects will be launched on various chains, which will be positive for Ethereum. We are still very early in the blockchain industry, so choosing another network over ETH would be premature, especially considering the success of the Ethereum community over the years and the intellectual capital within the community,” he said.

Ethereum, which has gained 7.6% in the last 24 hours, continues to trade at $3,350 at the time of writing.

*This is not investment advice.