Ethereum’s Performance Post-Merge
Kaiko’s data reveals that Ethereum’s performance has been a disaster since the Merge, with Bitcoin outperforming it in terms of price and volume. This trend is expected to continue, as recent ratios indicate that Bitcoin is extending its lead over Ethereum.
The Shift to Proof-of-Stake
Ethereum has transitioned from a proof-of-work network to a proof-of-stake network, where validators confirm transactions. This shift was made for energy and environmental considerations, making Ethereum more energy efficient. The recent upgrade to Ethereum 2.0, known as “The Merge,” marked the launch of the proof-of-stake era.
Bitcoin’s Outperformance Ahead of Halving
Despite Ethereum’s ambitions, Kaiko data shows that it has been underperforming Bitcoin. Both the price and volume ratios between ETH and BTC have been dropping. This may suggest that Bitcoin is overvalued compared to Ethereum, while the decrease in volume ratio indicates a preference for Bitcoin over Ethereum.
The approval of Ethereum Futures Exchange-Traded Funds by the SEC has boosted institutional investors’ access to ETH derivatives, increasing liquidity. Meanwhile, analysts predict the approval of spot Bitcoin ETFs in the US, further bolstering Bitcoin’s position.
Hot Take: Ethereum Struggles Post-Merge as Bitcoin Dominates
The Merge has not been kind to Ethereum, as it continues to lag behind Bitcoin in terms of price and volume. Despite its transition to a more energy-efficient proof-of-stake network, Ethereum has failed to outperform its rival. With Bitcoin gaining momentum ahead of its halving event and the potential approval of spot Bitcoin ETFs in the US, it seems that Ethereum will face an uphill battle in reclaiming its dominance.
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