As the price of BTC and SOL rises, Crypto X will eclipse Ethereum
Ethereum bulls have been forced to fend off a wave of defamation against Crypto X after some critics noted that the price of Ether (ETH) has lagged behind Bitcoin (BTC) and other strong-performing altcoins.
Ethereum to Bitcoin price chart – the measurement of 1 Ether to 1 Bitcoin, temporarily fell below 0.05 BTC on December 20, the lowest level in two years (since April 28, 2021), according to CoinMarketCap.
During the last bull market, the ratio increased to a peak of 0.087 BTC on September 12, 2021, but has since trended downward. In the year At the start of 2023, the ratio settled around 0.072 but has fallen since then.
Critics on social media seem to be pointing the finger at Ethereum's transaction fees, which they say has made it more tempting for crypto users to try lower-fee competing chains.
“Ethereum is broken. You no longer have to pay those fees. You have options,” said Jason A. Williams said on Dec. 20.
According to data from BitInfoCharts, fees on Ethereum averaged around $11 on December 19, although bitcoin fees were still valued at $32. On the other hand, Solana fees are consistently below $0.01 according to CoinCodex.
Even Vitalik Buterin, one of the creators of Ethereum, said that if transaction fees are not cheap, especially during bull markets, Ethereum will eventually “collapse”.
But other Ethereum bulls have quickly come to the defense.
Anthony Sassano, host of the Ethereum Show, told The Daily Guy that Ethereum is undervalued in the current market, while Bankless co-host Ryan Sean Adams said he was “gobsmacked” by the negative sentiment he's seen on Ethereum.
“I never thought ETH would be considered non-consensual again, but here we are. Long ETH 2024.
Related: Solana Price Technicians Hint 40% Crash in New Year
Meanwhile, Solana (SOL) bulls have been quick to note that SOL's price has been performing well against other cryptocurrencies, including Ether, especially over the past three months. According to CoinMarketCap, SOL is up 12% to $83 in the last 24 hours.
Other analysts have pointed to Solana's Ethereum decentralized exchange (DEX), stablecoin and non-exploding token (NFT) trading on both 24-hour and seven-day intervals this week, with recent price action prompting even more to suggest Solana. Ethereum “Flip” One Day
Solana is absolutely torn. Soul Bruce deserves to be dancing on his grave now (including ours). The ratio of ETHBTC is completely degraded. Vitalik continues to sell ETH. The Ethereum community is rocking back and forth in a mental asylum saying “Layer 2…Layer 2…Layer 2…” pic.twitter.com/xZhVx7XkVh
— Autism Capital (@AutismCapital) December 20, 2023
However, Ethereum is still locked in the most total value on the network at 28 billion dollars (TVL) – Solana is ranked fifth in TVL at 1.15 billion dollars, according to Defillama.
Additionally, Ethereum's market cap/TVL (Mcap/TVL) ratio is 9.4 compared to Solana's 30.45. MAC/TVL is a commonly used metric to measure the intrinsic value of a blockchain.
As the price of Ethereum is low, it may suggest that it is undervalued (relative to Solana).
Honestly I don't know how low ETH is right now and how believing it is somehow a non-consensus bet.
It doesn't matter – I can keep buying more ETH than the market can last.
— sassaal.eth/acc (@sassal0x) December 19, 2023
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