Ethereum Falters as Bitcoin Dominance Grows in Post-Halving Market Shift
Ethereum is facing mounting pressure as its performance against Bitcoin has slumped to the weakest levels in nearly five years, signaling a major shift in investor sentiment and market dynamics.
As of late March 2025, 1 ETH is equivalent to just 0.02191 BTC, the lowest since May 2020. That steep drop marks a 39% decline for ETH relative to BTC since the start of the year, in stark contrast to previous post-halving periods where Ethereum typically outperformed.
The divergence follows Bitcoin’s April 2024 halving, which historically has sparked bull runs across the crypto sector. But this time, global uncertainty — including inflation, rising bond yields, and fears of a trade war — has steered capital toward perceived safe-haven assets. Gold has surged to record highs, and within the digital asset world, Bitcoin is increasingly occupying that role.
Ethereum’s slump is also being magnified by competition from faster, leaner blockchains. Solana (SOL), for example, has gained significant ground — the SOLETH ratio is up 24% this year, highlighting Solana’s resilience despite a broader market pullback.
According to Glassnode, this is one of the worst quarters for ETH vs. BTC since 2019, reinforcing the idea that investors may be re-evaluating their crypto allocation strategies. Back then, Ether also struggled, dropping nearly 46% against Bitcoin in Q3.
The current trend raises a key question: Is Ethereum’s lag temporary, or is the market signaling a longer-term shift toward Bitcoin as the primary crypto investment vehicle?
