Ethereum's (ETH) market share has sharply declined from over 20% to near a record low of 7%. During the bull run of 2021, ETH's market share peaked at 22%.
Over the past three years, the market share of this altcoin has fluctuated between 16% and 20%, but has significantly declined in 2024.
Overall, the scale of ETH has decreased by 67%, hitting a 5-year low of 7%, due to uncertainty regarding tariffs and overwhelming negative sentiment towards this altcoin.
The ETH/BTC ratio decreased by 77%
During the same period, BTC outperformed Ethereum, which was the pioneer in smart contracts and DeFi. The ETH/BTC ratio – an index that tracks the relative price performance of ETH against BTC – also decreased to a 5-year low of 0.018.
This is an astonishing decrease of 77% since Ethereum transitioned from PoW (Proof-of-Work) to PoS (Proof-of-Stake).
Similarly, the value of ETH has dropped by 64%, from over $4K to $1.5K. The negative sentiment is not only limited to the retail market but also affects institutional interest in this altcoin in 2025.
Unlike December 2024, when ETH spot ETFs attracted over $2 billion in monthly inflows, Q1 2025 has seen weak demand. According to data from Soso Value, inflows only reached about $100 million or less in January and February.
However, nearly $500 million has been withdrawn from these products since March.
Despite the overwhelming negative sentiment, Ethereum has prepared several important upgrades, including Pectra and Fusaka.
These updates aim to improve L1 and L2 transaction speed and costs to compete with strong rivals like Solana (SOL).
Another potential positive factor is the ability to approve staking on ETH spot ETFs, with the next critical deadline in June. Meanwhile, whether ETH can find a bottom around $1.5K remains a question.
However, trader Michael van de Poppe predicts that ETH price could rise by 20% by the end of April or early May, based on oversold conditions on the weekly chart, signaling a potential reversal.
"I wouldn’t be surprised to see a 20% green candle on $ETH in the next 1-2 weeks."
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
