CandleFocus

Ether has lost one-third of its bitcoin value in a year

The market cap of Ethereum (ETH) in terms of Bitcoin (BTC) has decreased by one-third over the past year. It has been seven years since ETH reached a new high against BTC. Despite positive catalysts like Ethereum's switch to wealth-based block validation and predictions of deflationary supply, ETH's actual yield is only 3.5%, lower than expected. Ethereum's use cases, including NFTs and DeFi, have not been enough to convince investors to bid more BTC for ETH. Ethereum's latest approach to make a comeback is layer 2s, but it hasn't been successful so far. BTC remains the most compelling investment in the crypto market, with a larger market capitalization than all altcoins combined. Ethereum competitor Solana has seen significant gains against ETH, and other altcoins are also gaining prominence.

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