Compass Investments

– According to TradingView, the exchange ratio between ETH and BTC hit a yearly low of 0.041 after the cryptocurrency market plunged on Sunday. Since then, the ratio has remained at 0.043 at the time of writing, although digital assets including ETH have recovered significantly.

– Many can’t help but find this trend unusual. During bull market years, altcoins often outperformed bitcoin as money flowed from large digital assets to riskier smaller ones. Indeed, bitcoin’s first quarter rally confirmed this trend with altcoins like Solana and meme coins like PEPE and WIF. However, things are different with ETH.

This change calls into question the long-held belief that network effects alone can maintain Ethereum

s dominance, financial analyst Wesley Kress wrote on Twitter on Tuesday.

“Ethereum has traded poorly in this cycle and I think people are realizing that this is not the future. In their opinion, time will be Ethereum’s best friend, especially with the timing of new spot Ethereum ETFs coming to market.

Crypto Kaleo, a cryptocurrency authority, said Thursday:

“There has been too much hype around the potential that this ETF will immediately bring to the price

.

He noted that the Ethereum ETF has been live for 12 days. That’s how long it took for BTC to bottom and rebound after each ETF debuted in January.