ETH/BTC just hit its lowest point in over four years, dropping below 0.022. With Ethereum underperforming Bitcoin and facing strong competition from Solana and others, investors are asking: is the bleeding over, or just beginning?

ETH/BTC collapses to multi-year lows

Ethereum's ratio to Bitcoin has dropped over 70% since 2022

Ethereum is now trading at just 0.022 BTC, marking its lowest ratio since December 2020. This sharp decline reflects not just market trends, but a growing perception that Ethereum is losing ground to more agile L1 competitors like Solana and Avalanche.

With Ethereum down 46% year-to-date compared to Bitcoin’s 10% drop, the gap continues to widen. The market is clearly favoring Bitcoin amid uncertainty over Ethereum’s roadmap and execution pace.

DeFi dominance slipping

Ethereum's Total Value Locked falls while Solana gains ground

Ethereum's TVL stands at $50.5B, down from a 61.6% market share to 52.5%. Solana, meanwhile, has jumped from 2.8% to 7.2% over the same period. The shift in liquidity shows how users are diversifying into faster, cheaper chains.

Retail investors are flocking to meme coins and trading-heavy ecosystems, while Ethereum’s strength in staking and stable DeFi strategies may not be enough to sustain dominance.

Scalability promises remain unfulfilled

https://x.com/KobeissiLetter/status/1902707497242104266

Ethereum’s base layer struggles with low throughput

Despite the Merge and various upgrades, Ethereum’s mainnet still averages just 16 TPS. By contrast, Solana processes over 4,000 TPS, making it more attractive to developers.

Rollups like Arbitrum and Optimism help, but they also siphon users and fees away from the mainnet, weakening ETH’s core ecosystem and deflationary mechanisms.

Price outlook: bearish signs persist

Technical and macro risks point to further downside

Ethereum’s failure to reclaim the $2,100 zone signals weakness. Analysts warn that without a major reversal, ETH could retest $1,060.

Still, some traders see signs of deviation. If ETH breaks above $2,150, a run to $2,800 is possible. But until then, pressure continues.

Conclusion: Ethereum needs a reset

https://x.com/milocredit/status/1906763997292241005

Only innovation and stronger fundamentals can reverse the trend

Ethereum must accelerate its L2 strategy, reduce complexity, and improve UX. Until then, newer chains will keep attracting users and capital.

Market structure suggests Ethereum is in a fragile state, and without strong catalysts, its underperformance may continue into Q2.