Ethereum just dipped to a level we haven’t seen in years. The ETH/BTC ratio is now under 0.022—something we last saw back in December 2020. With Solana and others catching fire, ETH’s spot in the L1 race is being seriously questioned.
ETH Drops to 0.022 BTC as It Loses Steam Against Bitcoin
Let’s be honest—Ethereum hasn’t been looking great lately. Its value compared to Bitcoin has tanked. The ETH/BTC ratio has plummeted 73% from its 2022 high of 0.085. Right now, ETH is sitting around $1,880, down 9% this week and 62% from its all-time high.
Meanwhile, BTC is only down 10% this year. Ethereum? It’s down 46%. That performance gap is hard to ignore.
ETH used to dominate the smart contract world—but now it’s facing serious heat from chains like Solana, BNB, and Avalanche.
TVL Slides, User Behavior Shifts, Sentiment Turns Bearish
As of April, ETH controls just 52.5% of the DeFi TVL—down from 61% just two months ago. Solana, on the other hand, has tripled its share, now sitting at 7.24%.
Ethereum’s got the stakers and passive users. Solana? It’s drawing meme coin traders and degen vibes in droves.
Even with gas fees dropping to 1.12 GWEI, ETH’s network is still clunky compared to newer chains. And it’s not just the tech—investors aren’t feeling great either. ETH ETF flows are down almost 10%, while BTC ETFs keep breaking records.
Shorts on Ethereum? Up 500% since November. That’s… brutal.
Scaling Still Lags While L2s Take the Spotlight
Let’s talk speed. Ethereum still handles fewer than 100 transactions per second. Solana? Over 4,000.
ETH’s solution? Push everything to L2s like Arbitrum and Base. But that just pulls action (and fees) away from Ethereum’s base layer.
ETH burning was supposed to keep it deflationary—but with fewer base layer transactions, that’s not happening. ETH is back to being inflationary, and staking yields are now less than what you’d get in a stablecoin vault.
Even with the upcoming Pectra upgrade (doubling blob space), many don’t think it’s enough to fix what’s broken.
And mainnet usage? Pretty dead. Bots rule the gas charts, and new organic deployments are rare. Some even call ETH’s base layer a ghost town. Harsh—but not totally wrong.
What’s Next for Ethereum? More Pain or a Surprise Comeback?
Some say ETH could crash to $1,000 if macro conditions worsen. Others think a rally’s possible if ETH breaks back above $2,150.
It all comes down to momentum and reclaiming key levels. Until then, ETH is under pressure—and the bulls are holding their breath.
