As Bitcoin approaches the critical $100,000 milestone, attention has turned to Ethereum’s lagging performance. Despite its reputation as a leading altcoin, Ether’s dominance has dropped to 12.6%, its lowest level since April 2021, according to CoinMarketCap. This marks a significant decline, with Ethereum losing over 50% of its value against Bitcoin since 2021 and slipping below its 2016 cycle high.
Bitcoin has captured the spotlight over the past year, fueled by massive institutional inflows into Bitcoin ETFs. Dan McArdle, co-founder and CTO of Messari, notes the mainstream appeal of Bitcoin as “digital gold,” which resonates strongly with traditional finance (TradFi) investors.
Although hopes for a reversal emerged following the pro-crypto Donald Trump’s election victory in 2024, Ethereum’s gains were short-lived. Spot Ether ETFs, initially underwhelming in inflows, have only recently begun to show signs of recovery, suggesting Ethereum might be gearing up for a breakout.
While skeptics are quick to predict Ethereum’s demise, history shows the market’s sentiment can shift rapidly. A similar downturn in 2019 saw Ether rebound dramatically, rising from 0.01615 BTC to a peak of 0.08837 BTC over two years.
Competing smart contract platforms like Solana and Sui present challenges for Ethereum this cycle. However, improved regulatory clarity and growing institutional interest suggest that the ETH/BTC pair may be nearing, or has already reached, a long-term bottom.
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