According to analysts at Bitwise, Ethereum is currently undervalued and has been consistently underperforming against Bitcoin since late 2022. The value of ETH/BTC has decreased by 47% in the past 12 months. The disappointing performance is attributed to growing interest in artificial intelligence, meme coins, and tokenization of real-world assets, as well as Ethereum's congested and expensive network. The rise of Layer 2 scaling solutions has also fragmented activity, limiting the value captured by Ethereum's base layer. However, historical data suggests that Ethereum could potentially rebound in February. Bitcoin has risen by 3.72% year-to-date, while Ethereum has dropped by 20% since the beginning of 2025. Bitcoin has reached a new all-time high, while Ethereum is yet to surpass its November 2021 record price. The performance difference is reflected in the assets of exchange-traded funds, with U.S. Bitcoin ETFs having a total net asset value of $115 billion compared to ETH ETFs with only $10.15 billion.



Other News from Today