Bitcoin (BTC) in the cryptocurrency market $54,380.21 and Ethereum (ETH) 
$2,296.16remain the largest assets by market cap. However, Ethereum’s performance has lagged compared to Bitcoin over the past two years. While both assets have experienced large price swings, ETH has underperformed compared to BTC.
Ethereum’s Fall Against Bitcoin
According to CryptoQuant data, Ethereum has underperformed Bitcoin by 44% over the last two years. This decline began after “The Merge,” when Ethereum switched from Proof of Work (PoW) to Proof of Stake (PoS). Since then, Ethereum has struggled to keep up with Bitcoin. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The ETH/BTC price is at 0.0425, its lowest level since April 2021. Even the positive news with Spot ETF approvals in 2024 was not enough to correct ETH’s weak performance against Bitcoin.
Differences Between Ethereum and Bitcoin
Ethereum and Bitcoin have shown different trends in terms of network fees and transaction activity in recent months. Ethereum saw a decrease in network fees after the Dencun upgrade, which led to reduced network activity. For example, Ethereum’s transaction count dropped from 27 transactions per second to 11 in June 2021. This is one of the lowest levels since July 2020.
Bitcoin, on the other hand, has seen an increase in both transaction and fees over the same period. This increase is due to developments such as Bitcoin Ordinals and Runes increasing the demand for block space, which in turn increases transaction costs.
ETH/BTC MVRV Ratio Analysis
The market cap to realized value ratio (MVRV) over two years highlights the growing gap between Ethereum and Bitcoin. Ethereum’s MVRV is just under 1.16%, while Bitcoin’s MVRV is above 14%. This gap shows how far ETH lags compared to BTC.
According to CryptoQuant analysis, “The MVRV ratio measures the difference between the current market value of an asset and its realized value, revealing the profit or loss status of investors.”
BTC holders are currently making profits of over 14%, while ETH holders are recording losses of over 1%.
In light of this data, the difficulties experienced by Ethereum after the PoS transition, the decreases in network activity and fees have caused the deflationary pressure on the asset to decrease. In contrast, Bitcoin’s recent network activities and increasing transaction fees have contributed to Bitcoin holders maintaining their profitable positions.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
