ETH crashes to four-year low against BTC

Ethereum’s blockchain transitioned from work-based security to a financialized security model on September 15, 2022. Since it forked to proof-of-stake (PoS), ether (ETH) has made new lows against bitcoin (BTC).

The Merge (and earlier changes like EIP-1559) were supposed to cleanse the blockchain of its electricity-guzzling stigma, and the community latched onto the changes in ETH issuance as a new era for ETH as deflationary, “ultrasound money”

Instead, the event simply marked one of the best-ever prices to have sold ETH for BTC.

With the price of ETH now trading at a four-year low against BTC, consider these additional metrics of underperformance.

Price

Ether’s price — the first and most important metric — is a disappointing starting point. When it celebrated its move to PoS, it cost 0.074 BTC to buy one ETH. ETH then proceeded down a never-ending slide.

Today, it costs just 0.022 BTC to buy one ETH — 70% cheaper than when it was secured by the work of actual miners.

Market cap dominance

On September 15, 2022, ETH was worth 17.7% of the value of all crypto assets. BTC’s market dominance on that day was 37.6%.

In the two and a half years since, ETH’s market share has declined embarrassingly. Whereas BTC rallied to 58.9% market dominance, ETH has halved to a paltry 8%.

Flippening

Over the same time period, ETH’s flippening ratio has plummeted. On the day of The Merge, ETH was 44.4% of the way to flipping BTC with a rally of just 2.3X needed to attain a greater market cap.

Today, the flippening ratio has crashed to 13.8%, and ETH would need to rally 7.3X to become larger than BTC.