Ethereum To Bitcoin Ratio Hits A Record Low

At this time, the Ethereum to Bitcoin ratio is at an all-time low, surpassing the previous records set in December and April 2017. Compared to its record high of 0.17 BTC, the current price of Ethereum (0.041 BTC) is four times lesser. At the beginning of the year, 1 ETH was trading at 0.12 BTC, with the figure dwindling to a paltry 0.04 in May. While the deterioration of Ethereum against Bitcoin is surprising, there are many reasons that might have contributed to the appalling performance.

Firstly, the remarkable surge in Ethereum’s value that saw the coin jump from a measly $20 to $420 within a short period had an adverse impact on the coin. Back then, ETH nearly surpassed Bitcoin regarding market capitalization value. As a result, the crypto community shifted its focus on the pioneering digital currency, neglecting the then budding Ethereum. Due to the mainstream promotion of BTC, majority of investors directed their stakes towards Bitcoin, with the value of Ethereum falling to 0.02 BTC. By the time Ethereum initiated its promotion incentive, Bitcoin was at a record high, resulting in the further deterioration of Ether.

Additionally, the Ethereum network has been facing scalability issues since its designated capacity threshold was achieved at the end of 2017. Given that scalability was one of Ethereum’s’ advantages over Bitcoin, this bottleneck has had detrimental effect on the coin. Moreover, the deployment of the proof-of-stake consensus mechanism, known as Casper, has been postponed to next year. Casper was expected to facilitate the efficient scaling of the Ethereum network, allowing more users onto the blockchain.

The unforeseen delay surprised many crypto enthusiasts, causing a further plummeting in the value of Ethereum. On the other hand, Bitcoin has been hot with the speculation of making the coin an Exchange-Traded Fund (ETF). The delayed implementation of the Casper update means that DApps built on the Ethereum blockchain operate in a limited state, with only a handful of users using the apps on a regular basis.

Nevertheless, the future of Ethereum is still promising, as developers are working on improving the network’s sharding functionality. Although sharding is expected to enhance scalability, its launch date remains unknown. As of now, the market has to make do with short-tern solutions such as the lowering of coin issuance. Later on, the inauguration of Casper and deployment of the advanced sharding techniques will unlock the enormous potential of Ethereum smart contracts.

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