Ethereum’s Decline in Value Compared to Bitcoin

On-chain data revealed that Ethereum had fallen to its lowest valuation relative to Bitcoin in May 2020. The current trading rate is 0.023278, registering an 8.7% decline over the past 48 hours.

ETH/BTC Pair Drops to Its Lowest Level Since May 2020

Coinmarketcap data revealed that ETH lost 42.9% of its value since December 2024. The asset’s current price stands at $1,945 per coin. Markets experienced volatility this year due to macroeconomic factors and regulatory uncertainty.

> BREAKING 🚨: Ethereum$ETH falls to its lowest valuation relative to Bitcoin $BTC since May 2020
> — Barchart (@Barchart) March 12, 2025

Recent U.S. trade tariffs against Canada, China, and Mexico sent shockwaves across global markets. This led to stock plummets as investors expressed concern over a potential trade war between the countries.

Crypto markets across the board registered price declines and reduced market caps. Coinmarketcap data indicated that ETH’s market cap declined further during the collapse than any other crypto asset.

The data highlighted that Solana and BNB chains registered 35.6% and 23% in losses. TradingView data highlighted that Ethereum’s network total value locked (TVL) declined from its peak of $74 billion in December to $45 billion.

The pair’s plummet indicates a shift in Ethereum’s relative value compared to Bitcoin. The drop reflects broader market sentiment favoring BTC over Ethereum. Tradingview data revealed that crypto liquidations increased in the past 24 hours to over $900 million. The analytic platform highlighted that $202 million worth of ETH long positions were wiped from the network simultaneously.

The liquidations started after ETH lost its key support level at $2,000, which cushioned investors during previous sell-offs. DefiLlama data revealed stablecoin inflows slowed in the past month, indicating reduced capital rotation in ETH protocols.

The data also highlighted that decentralized exchange trading volumes declined from $92 billion in December to $82 billion in February. Futures trading on Ethereum also registered declines from $31 billion in December to $18 billion in February. DefiLlama data revealed that Ethereum’s revenue fell from $193 million in December to $26 million in February.

SosoValue data highlighted that spot Ether ETFs registered increased outflows of $176 million in the past month, indicating reduced institutional demand for ETH.

Ethereum Foundation Faces Liquidation Rumors Amid ETH Price Decline

An unidentified wallet rumored to belong to the Ethereum Foundation deposited 30,098 ETH into the Maker vault wallet. The deposit sparked rumors in the crypto community, as some suggested this could indicate the foundation planned to liquidate its holdings.

Ethereum developers Eric.eth and Sassal.eth responded to the rumors and denied that the wallet making the deposit belonged to the Ethereum Foundation. Crypto traders speculated that the foundation could face over $100 million in liquidations if Ethereum’s price fell further.

The Ethereum Foundation disclosed that its treasury was valued at $970.2 million in October last year, a 39% decline from $1.6 billion in March 2022. The drop was attributed to the drop in the price of Ethereum since the asset constitutes 81.3% of the foundation’s holdings.

The foundation exchanged 100 ETH for 374,334 DAI in December. It also revealed it sold 4,266 ETH throughout 2024 to acquire more yields. The foundation revealed it accumulated $12.21 million at an average of $2,795 per ETH.

The Ethereum Foundation invested 50,000 ETH worth over $165 million in Aave in January 2025. The foundation is said to have made the decision to create some yield as the price of ETH fell further. The periodic sell-offs suggested that the foundation managed its treasury holdings to cover operational expenses.

Some investors commented that if ETH’s price continues to fall, the foundation may be forced to sell portions of its holdings at less favorable prices. They hinted that if ETH fell below support levels, the foundation may fail to maintain its financial commitments, leading to liquidation.