🚨 Ethereum Hits a 4-Year Low Against Bitcoin: What’s Happening?

Ethereum (ETH) just hit its lowest level against Bitcoin (BTC) in four years, signaling a major shift in the crypto market. Back in 2022, when ETH switched to proof-of-stake (PoS), many expected it to boost Ethereum’s price. Instead, ETH has dropped 70% against BTC since The Merge, leaving investors wondering: what went wrong? 👀

📉 Ethereum’s Decline Against Bitcoin: By the Numbers

• ETH/BTC at The Merge (Sept 2022): 0.074 BTC
• ETH/BTC Today: 0.022 BTC (70% drop!) 📉
• Ethereum’s Market Dominance in 2022: 17.7%
• Ethereum’s Market Dominance Now: 8% 👎
• Bitcoin’s Market Dominance Then: 37.6%
• Bitcoin’s Market Dominance Now: 58.9% 🚀

Ethereum once had a shot at the “flippening” (surpassing Bitcoin’s market cap). In 2022, ETH needed only a 2.3x price increase to overtake BTC. Now? It would take a 7.3x surge—an unlikely scenario given current trends. 😬

⚠️ Why Is Ethereum Struggling?

Ethereum’s underperformance boils down to four key issues:

1️⃣ ETH’s Supply Is Growing (Not Shrinking)

• The Merge was supposed to make ETH deflationary, but Ethereum’s supply is still increasing. More ETH in circulation = weaker price.

2️⃣ Bitcoin’s Institutional Adoption Is Surging

• Big investors are choosing BTC over ETH. In March 2025 alone, institutions bought $11B worth of BTC—the highest since 2024. Meanwhile, ETH isn’t getting the same love. 😕

3️⃣ Spot Bitcoin ETFs Are Winning

• BTC spot ETFs are pulling in hundreds of millions in inflows, proving investors trust Bitcoin as a long-term asset. Ethereum’s ETFs? They’re bleeding cash. Last week alone, $13.32M exited ETH ETFs.

4️⃣ Ethereum’s Network Activity Is Slowing

• Active Ethereum wallets have dropped 21% since The Merge. Trading volume has also shrunk from 73% of BTC’s to just 59%.

🚀 Meanwhile, Bitcoin Is Thriving

Here’s why BTC is dominating the crypto market right now:

✅ Institutional Accumulation – Whales are buying BTC at record levels.
✅ Spot ETF Boom – BTC ETFs are growing, bringing in mainstream investors.
✅ Supply Shock – The percentage of BTC on exchanges is at its lowest since 2018, meaning investors are holding, not selling.
✅ Stronger Network – Bitcoin’s active addresses and transaction volume remain stable.

🔮 Can Ethereum Bounce Back?

ETH is still the #2 crypto, but it needs a game-changer to reverse its decline. Here’s what Ethereum must fix:

• Control Inflation – ETH needs to maintain deflationary tokenomics.
• Regain Investor Trust – Institutional money is flowing into BTC, not ETH.
• Boost Network Growth – More users, more demand, higher prices.
• Compete in the ETF Market – ETH’s ETFs are struggling while BTC’s thrive.

If Ethereum can fix these issues, it might have a chance. If not? Bitcoin will continue to dominate. 😬

TL;DR: Ethereum vs. Bitcoin

🔹 ETH has dropped 70% against BTC since 2022 📉
🔹 Bitcoin’s dominance is at 58.9%, Ethereum’s at 8%
🔹 Institutional investors prefer BTC over ETH
🔹 Bitcoin ETFs are thriving, Ethereum ETFs are struggling
🔹 Ethereum needs to fix inflation and boost network demand to stay competitive

Will Ethereum recover, or is Bitcoin just too strong? 🤔 Let’s see how this plays out.