Ethereum’s native token, Ether (ETH), has been struggling to maintain its value against Bitcoin (BTC) over the past few months. In March, ETH rose only 5.5% compared to BTC’s 19.5% gains on a month-to-date timeframe.
ETH/BTC Pair Down 9% Month-to-Date
As of March 23, the ETH/BTC pair was down about 9% month-to-date to 0.0633. This marks a continuation of Ethereum’s ongoing downtrend against Bitcoin, which has been going on for several months now.
Worst Month Since September 2022
Ethereum is on track to record its worst month since September 2022, when it fell 11.75%. This indicates that the ongoing downtrend may continue in the near future, despite occasional upticks in the value of Ether.
Possible Reasons for the Downtrend
There are several possible reasons why Ethereum is struggling to maintain its value against Bitcoin. One of the main reasons is the recent rise of non-fungible tokens (NFTs), which are typically based on the Ethereum blockchain.
Many investors and traders may be selling their Ether holdings in order to invest in NFTs, which are currently seeing a surge in popularity. This could be causing a temporary drop in the value of Ether.
Another possible reason is the ongoing scalability issues facing the Ethereum network. As more and more decentralized applications (dapps) are built on Ethereum, the network is becoming increasingly congested and slow.
This could be causing investors to lose confidence in Ethereum’s ability to keep up with the growing demand for decentralized applications, which could be impacting the value of Ether.
Overall, Ethereum’s native token Ether is continuing its multimonth downtrend against Bitcoin. While there are several possible reasons for this, including the rise of NFTs and scalability issues, it remains to be seen whether this trend will continue in the long-term.
For investors and traders looking to buy or sell Ether, it’s important to keep a close eye on market trends and news in order to make informed decisions about when to buy or sell. With the cryptocurrency market being as volatile as it is, it’s important to stay up-to-date on the latest developments in order to minimize risk and maximize potential gains.