Bitcoin broke a record by exceeding $109,000 with a sudden rise during the day. While it was stated that Trump’s inauguration was behind this rise in Bitcoin, Ethereum fell to its lowest level against Bitcoin since March 2021.
While Trump continues to boost Bitcoin’s popularity, Ethereum (ETH) continues to lose ground against BTC.
At this point, the ETH/BTC ratio dropped to 0.03, and it was stated that the choice of the Solana (SOL) blockchain for memecoin launches was effective in this decline.
Speaking to Coindesk, Presto Research analyst Min Jung stated that Ethereum was negatively affected by Solana’s popularity, saying:
“Ethereum has notably underperformed this cycle, with Solana gaining momentum thanks in particular to the memecoin craze and events like Trump launching his official memecoin on Solana instead of Ethereum.”
While Ethereum has underperformed against Solana, the analyst said that World Liberty Financial’s recent ETH accumulation shows that Ethereum continues to maintain strong appeal among institutions.
Stating that Ethereum continues to be strong despite all the negativity, the analyst said, “As the only cryptocurrency that has an ETF besides Bitcoin, Ethereum is in a good position to be the focus after Bitcoin.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/why-ethereum-keeps-losing-while-bitcoin-btc-rises-analyst-explains/