Ethereum has lost nearly half of its value against bitcoin with the ratio dropping from 0.041 BTC per eth to now 0.027 as pictured above.
The ratio has been dropping since at least September when the defi boom gave way.
Some stability until mid October, however, has given way to a speedier fall in the ratio, especially during this month.
That’s while bitcoin has been making gains, just about crossing $15,000 some six months after the halvening.
Its fixed limit moreover makes it especially appealing during these times of mass money printing across the wealthy western world.
Yet ethereum usually tends to keep up, but it has risen only 5% this week, while bitcoin has gained 15%.
Some delay in the launch of the ethereum deposit contract might have played a role in this lackluster performance, but that contract is out now.
That could affect price in as far as deposited eth is locked for probably two years, thus can’t be sold on the market, so effectively taking out of circulation some of the supply.
The effects of that however are unlikely to be felt for weeks, or maybe even a couple of months, as the process grinds through the Over the Counter (OTC) markets and all the rest.
In addition ethereum is not scaling, so narrowing significantly any difference between it and bitcoin, but zk tech second layer scaling can work on eth while it’s not clear it would work on bitcoin.
However, such zk tech implementation is probably some time off too, so bitcoin is grabbing much of the attention.
That was the case in late 2017 as well for some time when bitcoin raced to $20,000 while eth just sat at $300.
Eth then mooned, straight to $1,200 from that $300, something that it may well repeat this time as well.
Defi has entered the equation since, however, and a mini bear market there may well be nearing a bottom. Something that might reflect on eth’s price after defi kept it down for some time now.