Ethereum has been shrinking in value relative to Bitcoin. The ETH/BTC pair has been creating lower lows lately. In fact, a few hours ago, it hit a low of 0.05981, a level last seen 14 months ago, in July 2022. Meanwhile, Ethereum’s dominance has been losing its luster. From nearly 21% in June, it has been hovering around 18.5% in recent days.
Benjamin Cowen, crypto analyst and founder of IntoTheCryptoverse, recently asserted in an article published on X [formerly Twitter] that he expects a more significant downside move to come.
In this case, ETH adoption and accumulation took a hit. The latest data from Glassnode shows that the number of addresses holding 0.1 coins and above has dropped to 5,138,008. In fact, it ended up hitting a 4-month low.
Ethereum and private chains
While the above developments may seem pessimistic, some in the space have recently expressed their support for Ethereum and how things could improve in the future. Paul Brody, global blockchain leader at Big Four accounting firm Ernst & Young, noted that builders are falling behind the curve by choosing to develop projects on other self-built ecosystems. In fact, they are gatekeeping adoption by doing so. However, Ethereum has the potential to drive mainstream adoption of big bank crypto projects. Looking back, this could have a good impact on ETH adoption in the long run. Specifically, Brody posted,
“A lot of people ‘explain’ that they are dabbling in permissioned chains. No one talks about how badly they will fall behind when crypto natives build on public Ethereum and big banks realize their private chains can’t drive adoption.”
