- Almost two years have passed since Ethereum’s upgrade, The Merge.
- The current price of ETH/BTC is 0.0425, the lowest level since April 2021.
Analysts claim that since the “merge” to proof-of-stake on the Ethereum blockchain occurred about two years ago, Ether’s performance has lagged behind bitcoin’s by a margin of up to 44%.
Almost two years have passed since Ethereum’s upgrade, The Merge, which transitioned to a proof-of-stake network, and next week will observe that anniversary. Analysts from CryptoQuant found that Ethereum has lagged behind bitcoin by 44% since then.
Despite the approval of Ethereum spot exchange-traded funds (ETFs) in the US on July 23, the experts noted that ether has still lagged behind bitcoin. The current price of ETH/BTC is 0.0425, the lowest level since April 2021.
Further Decline on the Cards
According to analysts at CryptoQuant, ether’s underperformance since moving to proof-of-stake is not limited to Bitcoin. Altcoins such as Solana and BNB have outperformed Ethereum after ‘the merge,’ with a 53% decline and an 18% decline, respectively, according to CryptoQuant Head of Research Julio Moreno.
Analysts also warned that ether’s value compared to bitcoin might fall much more. Ether is still above the undervaluation zone, therefore it has room to decline in relation to bitcoin. They said that in order for ether to reach the undervaluation zone, its relative value to bitcoin would have to drop to about 0.02—a 50% decline.
According to CryptoQuant’s analysts, a decrease in network activity dynamics could be a major factor contributing to the underperformance. According to what they indicated, Ethereum’s poor performance is linked to less robust network activity patterns when contrasted with bitcoin. One of the lowest points since July 2020 has been reached by Ethereum in relation to Bitcoin’s transaction count.
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