Meanwhile, Ethereum faced setbacks, hitting its lowest value against Bitcoin since March 2021, with the ETH/BTC ratio dropping to 0.03.
Bitcoin price hit a new all-time high on Monday, surging past $109,000. This rise was fueled by enthusiasm surrounding Donald Trump’s inauguration, which drove market momentum.
However, Ethereum faced setbacks, reaching its lowest value against Bitcoin since March 2021. The ETH/BTC ratio dropped to 0.03.
One factor contributing to Ethereum's struggles was the rise of Solana. Driven by the memecoin trend, Solana's popularity surged, with Trump launching his official memecoin on the Solana blockchain rather than Ethereum. This shift impacted Ethereum's performance in the current cycle.
According to Min Jung, an analyst at Presto Research, Solana's momentum, spurred by events like memecoin launches, put Ethereum at a disadvantage. However, Jung noted that Ethereum remained attractive to institutions, highlighting World Liberty Financial's recent ETH accumulation.
Despite challenges, Ethereum showed resilience. Being the only cryptocurrency besides Bitcoin to have an ETF attracted attention and maintained Ethereum's crucial role in the broader crypto landscape, Jung said. Once Bitcoin's rally stabilizes, investors will likely focus on Ethereum, the analyst added.
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