Supporters of Ethereum have been actively countering negative perceptions on Crypto X, as Ethereum’s Ether (ETH) has recently underperformed compared to Bitcoin (BTC) and other high-performing altcoins.
The Ethereum to Bitcoin price ratio, which compares the value of 1 Ether to 1 Bitcoin, dropped to below 0.05 BTC on December 20, reaching its lowest point since April 28, 2021, as per CoinMarketCap data. This ratio had climbed to 0.087 BTC at its peak on September 12, 2021, during the last bull market, but has been on a downward trend since. Starting 2023 at around 0.072, the ratio has continued to decline.
Critics on social media have been targeting Ethereum’s transaction fees as a key issue, suggesting that these fees are driving users towards other blockchain platforms with lower costs.
Bitcoin advocate Jason A. Williams voiced his criticism on December 20, stating, “Ethereum is broken. You don’t have to pay those fees anymore. You have options.” According to BitInfoCharts, Ethereum’s fees averaged about $11 on December 19, while Bitcoin’s fees were higher at around $32. In contrast, Solana’s fees are consistently below $0.01, as reported by CoinCodex.
Even Ethereum co-founder Vitalik Buterin has acknowledged that Ethereum must reduce its transaction fees to avoid failure, especially in bull markets.
Despite the criticism, Ethereum supporters have been vocal in their defense. Anthony Sassano, host of The Daily Gwei, insists Ethereum is currently undervalued, and Ryan Sean Adams of Bankless expressed surprise at the negative sentiment surrounding Ethereum, stating, “I never anticipated ETH would be viewed as non-consensus underdog again, yet here we are. Long ETH 2024.”
Solana (SOL) supporters have also highlighted SOL’s recent strong performance against other cryptocurrencies, including Ether. Over the past 24 hours, SOL has risen by 12% to $83, according to CoinMarketCap. Observers have noted Solana’s increasing dominance in decentralized exchange (DEX), stablecoin, and non-fungible token (NFT) trading volumes, outperforming Ethereum in these areas over various time frames. This has led some to speculate that Solana might eventually surpass Ethereum.
However, Ethereum still leads in terms of total value locked (TVL) on its network, with $28 billion, while Solana ranks fifth with $1.15 billion, based on DefiLlama data. Furthermore, when comparing the market cap/TVL ratio, a metric used to assess a blockchain’s intrinsic value, Ethereum’s ratio of 9.4 suggests it may be undervalued compared to Solana’s 30.45.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up