ETH Lags Behind Bitcoin After PoS Transition
Since Ethereum transitioned to Proof-of-Stake (PoS) almost two years ago, it has fallen behind Bitcoin in price performance, according to CryptoQuant analysts.
Ethereum’s Price Performance
Ethereum’s price has dropped 44% against Bitcoin since the Merge, which took place in September 2022. The ETH/BTC pair is currently trading at 0.0425, its lowest point since April 2021.
Ethereum has also lagged behind other altcoins, including Solana (down 53%) and BNB (down 18%).
Reasons for Ethereum’s Lag
Analysts attribute Ethereum’s lagging performance to low network activity. The number of transactions on the Ethereum blockchain has fallen to one of its lowest levels since July 2020, compared to Bitcoin.
Institutional investors seem to be favoring Bitcoin over Ethereum, as evidenced by the low capital inflows into ETH ETFs.
Future Outlook
Analysts predict that the price of Ethereum in Bitcoin terms could fall by another 50% to 0.02.
It remains to be seen whether Ethereum will be able to regain its momentum.
