The crypto market has been struggling lately, with Bitcoin and Ethereum taking a hit. But even though both are down, Bitcoin has been doing better than Ethereum.
Ethereum’s Underperformance
Since the “Merge” in 2022, where Ethereum switched to a new system, it’s been trailing behind Bitcoin. In fact, Ethereum is down 44% against Bitcoin since then. This means you could buy more Bitcoin with the same amount of Ethereum than you could before the Merge.
Why is Ethereum lagging?
Lower Network Activity: Ethereum’s network is less busy than it used to be. Fewer transactions are happening, and fees are lower. This suggests people aren’t using Ethereum as much as they used to.
Growing Supply: More Ethereum is being created, which can put downward pressure on its price.
Investor Preference: Investors seem to be favoring Bitcoin over Ethereum. This is shown by the fact that Bitcoin is being traded more than Ethereum.
What’s Next?
Analysts believe Ethereum could continue to struggle against Bitcoin. They think it would need to drop by another 50% to reach a point where it’s considered undervalued.
So, while the crypto market is down overall, Bitcoin is holding its own better than Ethereum. It’s worth keeping an eye on this trend to see how it plays out in the future.
