- A new debate has been sparked by the recent lows of ETH/BTC.
- Speculators expect ETH will hit $4k by 2025
Ethereum [ETH] Since over three years, the value of Bitcoin has declined. The ETH/BTC rate, a metric that tracks ETH’s relative performance compared to BTC is the best way to demonstrate this. Recently, it reached a low of 0.022%.
Alex Thorn of Galaxy Digital, Head Research, commented on the prolonged decline. stated,
“Ether is down 74% against Bitcoin since switching from proof of work to proof of stake.”
TradingView: Source for ETH/BTC
Some community members even have a sworn oath to protect the spot. called For the network to go back to PoW, like BTC. This is assuming the value of the altcoin can be boosted again.
What is the value of ETH?
Quinn Thompson is the founder and CEO of VC Lekker Fund. believes The ETH currency is “not worth the investment.” He also cited a decline in network activity.
“Make no mistake, $ETH as an investment is completely dead. A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here.”
The Block
The network, he said, has many benefits as a service but is not an asset. Nic Carter, a partner at Castle Island Ventures as well as co-founder and data aggregator Coinmetrics echoed the sentiment.
Carter says that L2s are responsible for the decline in ETH value. stated,
“The #1 cause of this is greedy ETH L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK. ETH was buried in an avalanche of its own tokens. Died by its own hand.”
Thompson claims that the ETH/BTC rate declined double digits in the bull cycle of 2023-2024 and could even be worse during a bear one.
Recent ETF flows have also shown a dislocation in the top two crypto assets. The U.S. spot BTC-based ETFs have seen over $1 billion of inflows in the last 10 days. (Apart for Friday’s $93M inflows).
The U.S. spot ETH funds, however, are experiencing consistent outflows. Only two days have seen inflows. Over $400M was taken out of the ETFs during March.
Source: Soso value
It is easy to see that the low interest of institutional investors in altcoins reflects the negativity on social media.
The weak flow couldn’t stop ETH from recovering. The prediction site The price of ETH that bettors expect to see in 2025, according to Polymarket (with the largest volume at $710k), is set at $4k. Second-highest volume for $5k.
Deribit option traders are not expecting to reach the $4k goal until September (a 10% chance). ETH is currently valued at $1.87,000, down 54 percent from the December peak of $4,000.
Source: Deribit
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Source: ambcrypto.com
