The price of Ethereum’s native token, Ether (ETH) is trading around a 15-month low versus Bitcoin (BTC), and the lowest since Ethereum switched to proof-of-stake (PoS).
Cointelegraph takes a closer look at some of the reasons for the continuous drop of the ETH/BTC pair.
Ether’s historical price action has changed
In previous market cycles, Ethereum often outperformed BTC during bullish market trends, but this relationship began to change at the start of 2023. Ether and numerous altcoins struggled as the narrative around altcoins use within Web3, DeFi and NFTs came under pressure in 2022 and 2023.
Stringent regulations against the crypto industry, severely muted inflows from retail and institutional investors, an uptick in investors seeking shelter in US-dollar-pegged stablecoins also impacted sentiment for Etheruem.
Bitcoin dominance rises
In addition to a change in Ether’s performance in its BTC pair, ETH was negatively impacted by the steady rise in Bitcoin dominance. As reported by Cointelegraph,
“Bitcoin’s market dominance has reached 54%, its highest in the last 30 months, indicating the top cryptocurrency is strengthening just before the halving event scheduled for April 2024.”
Bitcoin…
