Research by K33 and Kaiko analysts have revealed that the Ethereum to Bitcoin ratio has reached new annual lows.
However, there is potential for this trend to reverse with the emergence of an ETF based on futures for the second largest cryptocurrency by market capitalization.
This downward trend has been attributed to a decrease in activity in the DeFi and NFT sectors since September 2022.
Additionally, Kaiko analysts have observed that Ethereum has shown weakness not only in relation to Bitcoin, but also to other altcoins.
This trend has been accompanied by a decrease in trading volume for Ethereum.
Further analysis by Deutsche Digital Assets suggests that the current weakness of Ethereum in comparison to Bitcoin may be due to the resumption of net emission at 0.22% per annum and a decrease in the burning of commissions, which is common during periods of low network activity.