Visualizing the Ethereum to Bitcoin Ratio (2015-2024)

The value of ethereum compared to bitcoin recently hit a three-year low, but a reversal could be on the horizon following Trump's election victory.

The value of ethereum relative to bitcoin has recently hit a three-year low, but a reversal could be on the horizon following Trump’s election victory.

The second-largest cryptocurrency by market cap behind bitcoin, ethereum has historically followed bitcoin’s price movements against the U.S. dollar with more volatility.

This graphic uses data from TradingView to show the ETH/BTC ratio, a key barometer of the cryptocurrency market’s interest and demand for altcoins (alternative cryptocurrencies besides bitcoin and ethereum), which can be purchased using ETH on the Ethereum blockchain.

As the second-largest cryptocurrency, ethereum has returned 32% year-to-date against the U.S. dollar, while bitcoin has climbed 83% to reach about $77,000 as of November 8th.

The ETH/BTC ratio has declined sharply from its highs in September 2022, when the Ethereum blockchain transitioned to a proof-of-stake network to enhance security and energy efficiency.

While institutional investors have largely focused on bitcoin, ethereum has attracted comparatively less interest, despite its centrality to decentralized finance.

Driving ethereum’s significant price gains against bitcoin is the increasing prevalence of initial coin offerings and decentralized applications (DApps) that operate on the Ethereum blockchain.

In 2021, the ETH/BTC soared to 0.87 as interest in DApps gained renewed momentum. By the end of 2021, there were 2.7 million unique active wallets connecting to DApps, and of the broader decentralized finance space, 60% were built on the Ethereum blockchain.

Fast-forward to today, bitcoin still leads the crypto landscape; bitcoin ETF assets are valued at roughly $70 billion, having more than doubled over the past year. In contrast, ethereum ETF assets under management have declined from nearly $10 billion to $7 billion as of early November. However, since November 6, ETF inflows have surged by $132 million in two days, indicating bullish sentiment among investors.

To learn more about this topic from an ownership perspective, check out this graphic on the largest corporate holders of bitcoin.