Ethereum Experiences 77% Price Decline Against Bitcoin, Santiment Reports
Ethereum's price has dropped 77% against Bitcoin since December 2021, reflecting a significant underperformance. Key insights from Santiment highlight several factors contributing to this decline:
- Ethereum struggles with competition from Layer 2 solutions, which divert activity from the mainnet.
- Complex roadmaps and updates create investor confusion, making Ethereum less accessible than Bitcoin.
- High gas fees and slow upgrades drive users toward faster, cheaper alternatives.
- Regulatory uncertainties regarding Ethereum's classification as a security contribute to its volatility.
- Lack of a clear investment narrative limits appeal compared to Bitcoin, perceived as "digital gold."
- Post-upgrade sell pressure from staked ETH withdrawals hinders growth momentum.
Ethereum's inability to recover towards its November 2021 all-time high of $4,760 contrasts sharply with Bitcoin's market dominance, leading to perceptions of Ethereum as an underperforming asset.
