Bitcoin's market dominance over Ethereum continues to increase

Analytics company Matrixport presented a study demonstrating the weakening position of Ethereum (ETH) in relation to Bitcoin (BTC). Since 2022, the ETH/BTC trading pair has been demonstrating a downward trend, which has persisted despite recent technological updates to the platform. Experts note a shift in investor interest towards the first cryptocurrency, perceived as a more reliable investment tool.

Contrary to market expectations, a significant update to the Ethereum network in 2022 did not bring the expected increase in the asset's value. Subsequent technical improvements, including the implementation of Dencun, also did not have a significant impact on the digital coin's quotes. Experts characterize these changes as systematic steps in the development of the ecosystem that are not capable of radically affecting the market value of ETH.

Matrixport experts point to the restrained interest in Ethereum-based ETFs as one of the key factors in the current situation. Unlike Bitcoin, which received a significant boost after the launch of spot exchange-traded funds, the second-largest cryptocurrency by market capitalization failed to attract sufficient attention from institutional market participants.

Additional pressure on Ethereum's position is exerted by the growing popularity of meme tokens on alternative blockchains. In particular, the low cost of transactions on the Solana network contributes to the migration of users to this platform. High commission fees and the relative complexity of interaction with Ethereum reduce the attractiveness of the network for new participants.

At the same time, analysts note positive aspects in the development of the Ethereum ecosystem. In particular, the volume of USDT stablecoin issuance on the network exceeded the same figure on the Tron platform, which indicates the continued demand for certain segments of the Ethereum infrastructure among users.

Experts predict that the difficult competitive situation for Ethereum will continue in 2025. The lack of unique advantages may push investors to look for alternative solutions, and the coming months will be decisive for the future course of the digital asset.