According to U.Today, the ratio between Ethereum's value and Bitcoin's value, known as the ETH/BTC metric, has failed to recover from a multi-year downtrend. Tuur Demeester, a seasoned Bitcoiner and author of the Bitcoin Reformation theory, noted that this key indicator has lost over a third of its value in two years.
In his recent thread on X, formerly known as Twitter, Demeester highlighted that the ETH/BTC metric is down by 27.9% in the past 12 months. This decline is the result of a prolonged downtrend, with Ethereum losing 36.4% against Bitcoin over two years. The weekly, monthly, and six-monthly losses stand at 3.2%, 5.2%, and 13.7% respectively.
Demeester attributed this long-term decline to Ethereum's migration to the proof-of-stake (PoS) consensus 18 months ago. He pointed out that following this significant upgrade, Bitcoin became the only major cryptocurrency using the proof-of-work (PoW) consensus. Ethereum's founder, Vitalik Buterin, had previously criticized the PoW version for being too susceptible to centralization, describing it as a 'temporary stage' before the transition to PoS. The PoS ecosystem of Ethereum now boasts over 1 million active validators.
Despite the recent decline, some followers of Demeester suggested that the ETH/BTC metric would show a 76,000% growth over a 10-year timeframe, rather than a 36.4% decrease. However, veteran trader Peter Brandt predicted that the ETH/BTC ratio could fall by 57% in the next three years, based on Demeester's model.