Ethereum digital token grew by 300% after historic collapse

Ethereum ETH $2,807.56 Bridged Ether (StarkGate) 1.19% Market capitalization $0.24 billion VOL. 24 hours $1.44 billion has risen by 300% from its low in 2022, but lags far behind bitcoin BTC $95,553.89 Bitcoin -1.16% Market capitalization $1.89 trillion VOL. 24 hours $0.94 billion in terms of price dynamics. According to Glassnode, the ETH/BTC ratio has been steadily declining since mid-2022, indicating that bitcoin has dominated this cycle.

The main reason for this lag is the preference for bitcoin among institutional investors. In particular, the SEC approved spot bitcoin ETFs back in January 2024, while applications for Ethereum are still pending. This allowed BTC to grow by 160% in 2024, while ETH rose by only 90%.

Despite this, Ethereum remains a key platform for decentralized finance (DeFi) and holds 58% of the total blockchain capital (TVL) worth $ 43 billion. However, competitors such as Solana SOL $167.24 Solana -3.56% Market capitalization $81.74 billion VOL. 24 hours $0.25 billion and Avalanche AVAX $24.62 Binance-Peg Avalanche -4.32% Market capitalization $49.19 million VOL. 24 hours $38.87 million are quickly catching up with Ethereum in terms of fees, staking, and scalable solutions.

Technical analysis indicates that ETH needs to break through the $ 3,400 level to resume its uptrend. A breakout of this level could result in the liquidation of more than $ 1 billion worth of positions and spur growth to $ 4,000. However, if ETH fails to gain a foothold above $ 3,500, it may return to support at $ 3,000.

Experts believe that to stay ahead of bitcoin, Ethereum should focus on real-world application scenarios, not just on dominating the DeFi sector. So far, the ETH/BTC trend continues to decline, testing the patience of investors.