ETH crashes to four-year low against BTC

Ethereums blockchain transitioned from work-based security to a financialized security model on September 15, 2022. Since it forked to proof-of-stake (PoS), ether (ETH) has made new lows against bitcoin (BTC).

The Merge (and earlier changes like EIP-1559) were supposed to cleanse the blockchain of its electricity-guzzling stigma, and the community latched onto the changes in ETH issuance as a new era for ETH as deflationary, “ultrasound money”

Instead, the event simply marked one of the best-ever prices to have sold ETH for BTC.

With the price of ETH now trading at a four-year low against BTC, consider these additional metrics of underperformance.

Price

Ethers price — the first and most important metric — is a disappointing starting point. When it celebrated its move to PoS, it cost 0.074 BTC to buy one ETH. ETH then proceeded down a never-ending slide.

Today, it costs just 0.022 BTC to buy one ETH — 70% cheaper than when it was secured by the work of actual miners.

Market cap dominance

On September 15, 2022, ETH was worth 17.7% of the value of all crypto assets. BTCs market dominance on that day was 37.6%.

In the two and a half years since, ETHs market share has declined embarrassingly. Whereas BTC rallied to 58.9% market dominance, ETH has halved to a paltry 8%.

Flippening

Over the same time period, ETHs flippening ratio has plummeted. On the day of The Merge, ETH was 44.4% of the way to flipping BTC with a rally of just 2.3X needed to attain a greater market cap.

Today, the flippening ratio has crashed to 13.8%, and ETH would need to rally 7.3X to become larger than BTC.

Active wallets

On September 15, 2022, Bitcoin had 841,579 active addresses. Fast forward to today, and it has lost 21% of those users. It now boasts 665,063 active addresses.

ETH failed to outperform on even this disappointing metric. On September 15, 2022, Ethereum had 619,189 active addresses but has lost a similar 21% of its active addresses as of today. That figure now stands at 486,636.

Trading volume

BTC has also siphoned trading activity from ETH since it abandoned work-based security. On September 15, 2022, ETH‘s $25 billion was a respectable 73% of BTC’s $34 billion volume.

Today, that percentage has dropped to 59%: $19 billion versus BTCs $32 billion.