Ethereum Struggles as Bitcoin Soars: Drops to 14-Month Low, Dominance at 18%

Ethereum’s performance in comparison to Bitcoin has been on a declining trend. The ETH/BTC trading pair has recently been establishing lower price points. Just a few hours ago, it reached a low of 0.05981, a level not seen since July 2022, which was 14 months ago. Concurrently, Ethereum’s dominance in the cryptocurrency market has also been diminishing. After peaking at nearly 21% in June, it has been fluctuating around the 18.5% mark in the past few days. Benjamin Cowen, a cryptocurrency analyst and the founder of IntoTheCryptoverse, expressed in a recent post on X (formerly known as Twitter) that he anticipates a more substantial downward movement in the future.

Amidst these developments, ETH’s adoption and accumulation have faced setbacks. According to the latest data from Glassnode, the count of addresses holding 0.1 or more Ethereum coins has decreased to 5,138,008, marking a 4-month low.

Ethereum Versus Private Chains: Unraveling the Differences

Despite the somewhat negative trends mentioned earlier, there is optimism within the cryptocurrency community regarding Ethereum’s future prospects. Prominent figures in the space have recently expressed their support for ETH and its potential for improvement. Paul Brody, the Global Blockchain Leader at the Big Four accounting firm Ernst & Young, highlighted that developers who choose to build their projects on alternative, isolated ecosystems are, in fact, hindering the adoption of blockchain technology. He believes that ETH has the capability to drive mainstream adoption for cryptocurrency projects, especially those associated with major financial institutions. In hindsight, this could positively impact Ethereum’s long-term adoption. In his recent post, Brody specifically stated that,

“Lots of people “explaining” they’re dabbling with permissioned chains. Nobody is talking about how badly behind they will be when crypto-natives build on public ETH and the big banks realize their private chains don’t drive adoption.”