Ethereum Faces Pressure as ETH/BTC Ratio Hits 2020 Low

• Ethereum’s ETH/BTC ratio hits its lowest since June 2020 amid Bitcoin’s price surge.
• Bitcoin’s rise to $80K weakens Ethereum’s dominance in the current market cycle.
• Ethereum’s DeFi ecosystem remains resilient despite growing competition from Bitcoin.

The ETH/BTC pair dropped to its lowest value since June 2020, indicating major changes in the financial relationship between Ethereum and Bitcoin. The Ethereum cryptocurrency trades at 0.02193 BTC while Bitcoin rises above $80,000, strengthening its market position. Experts are paying special attention to the fall of the ETH/BTC pair, which is in the foreground in assessing the prospects for Ethereum in the future.

Bitcoin’s Institutional Appeal Drives Growth

Bitcoin interest is growing among retail and institutional investors due to its actively ascending price. Since investors increasingly see Bitcoin as a digital version of gold, they continue to demand it, which reinforces its status as a “store of value.”New Bitcoin price peaks establish its market dominance, decreasing Ethereum’s standing in the cryptocurrency world.

Bitcoin stands out during economic insecurities because its established security features and straightforward value storage ability draw more investment interest. The resurgence of institutional support for Bitcoin gives experts confidence that its established leadership position will enable it to remain dominant as it continues outranking Ethereum in the market.

Ethereum’s Evolution and Market Struggles

The proof-of-stake (PoS) transition, known as the “Merge,” has enhanced Ethereum’s capabilities while lowering its power requirements, though these benefits have not led it to achieve market supremacy. Ethereum maintains its position as the leader in dApps, DeFi, and NFTs, but strong Bitcoin investment has caused issues with its market position value.

Ethereum’s dominant position in DeFi and its expanding ecosystem continue to decline as Bitcoin’s value keeps increasing. While Ethereum-based decentralized exchanges (DEXs) remained popular between 2021 and 2023, signs are emerging that Ethereum may struggle to maintain its position as the second most valuable cryptocurrency.

Ethereum-based protocols saw their total value locked (TVL) peak in 2021 as the DeFi ecosystem experienced significant expansion. However, the broader bear market trends brought about a significant downturn in TVL during 2022. The downturn continued into 2023, and it was only in 2024 that the market started to pick up, and by March 2025, it crossed 25M ETH.

Related: Bitcoin and Ethereum Face Q1 Losses Amid Trade Uncertainty

Ethereum’s decentralized exchange (DEX) sector remains a crucial pillar of its ecosystem despite facing competitive pressures. User engagement within Ethereum’s network remains strong, as DEX-based transactions in ETH continue to show high activity levels. While Bitcoin maintains a higher valuation, Ethereum’s fundamental role in decentralized finance remains solid.

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