ETH/BTC, a metric of Ethereum (ETH) price in Bitcoins (BTC), plummeted to levels unseen since April 2021. CryptoQuant experts demonstrate how Ethereum (ETH) lost its supremacy in terms of network activity, tokenomics and more.

ETH/BTC price tumbles to 40-month lows, CryptoQuant says

The ETH/BTC ratio, a critical metric for the global blockchain ecosystem, dipped to 0.0425. This is the lowest level for this indicator registered since April 2021. Such calculations were shared by CryptoQuant, a major on-chain analytics team, in a recent X thread.

As such, Ethereum (ETH) lost 44% of its value against the largest cryptocurrency since The Merge transition happened in September 2022.

Such painful performance of ETH should be attributed to a combination of factors, CryptoQuant experts say. Launched in July 2024, Ethereum Spot ETF failed to mirror the success of Bitcoin's due to the lack of liquidity and market uncertainty.

The Ethereum (ETH) network has witnessed too-low transaction activity accompanied with a dramatic decrease in fees generated. This dynamic was amplified by the L2 narrative run and Dencun upgrade activation.

Is Ethereum (ETH) in trouble?

Also, some other blockchain usage metrics on Bitcoin (BTC) are higher than those of Ethereum (ETH) thanks to the popularity of Inscriptions, Runes, L2s and so on.

The CryptoQuant team, however, suggests that the worst is yet to come for the second crypto:

Ethereum could fall further with respect to Bitcoin as ETH is still above undervaluation territory. We estimate that ETH would need to fall to about 0.02 in terms of Bitcoin, a 50% decline, for it to enter undervaluation territory.

Once Ethereum (ETH) lost its status of deflationary currency, its monetary design does not look so attractive for investors, the report says.

As covered by U.Today previously, Justin Bons of Cyber Capital highlighted that the "L2 lobby" is dragging Ethereum down to irrelevance right now.