What is a surprising turn of events? Ethereum Bitcoin’s performance has been down 44% ever since it switched to Proof of Stake (PoS). CryptoQuant, a digital asset analytics company, shared the data. The analysts also point out that there is a possibility of even more declines.
These two assets dominate the markets. The distance between the two assets seems to be increasing. BTC and ETh remain the two only crypto-based exchange traded funds (ETFs) in the United States. The latter’s poor performance could keep it that way in the near future.
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Since PoS Switch, ETH has been underperforming BTC.
Few cryptos have been able to thrive this summer despite the overall market bear. Ethereum has been underperforming in the recent past. According to a report by, despite only being down 1% over the past 30 days, Ethereum has dropped 6% in value just in the last seven days. CoinMarketCap.
This appears to be the microcosm for greater problems facing the second largest crypto. CryptoQuant’s data shows that Ethereum is underperforming Bitcoin by 44 percent since the switch to proof-of-stake. In fact, the cryptocurrency hasn’t lived up to expectations two years after making the proof-of-stake switch.
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“Next week will mark two years since Ethereum switched to a proof-of-stake network, an upgrade now as The Merge,” CryptoQuant analysts said The Block. “Since then, Ethereum had underperformed Bitcoin by 44%.”
But that’s not the only thing it performed poorly with. “Ethereum has also underperformed altcoins like Solana and BNB since ‘The Merge,’ down 53% and 18%, respectively,” Julio Morean, the company’s Director of Research, said.
“Ethereum could fall further with respect to Bitcoin as Ether is still above undervaluation territory,” Additions to the list include: “We estimate that Ether would need to fall about 0.02 in term so fBitcoin, a 50% decline, for it to enter undervaluation territory.” Analysts believe that the main reason for this drop is due to the “weaker network activity,” BTC is a better alternative.
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Source: watcher.guru
