Ether, the second largest cryptocurrency by market cap, is nearly 50% off its all-time high.
The ETH/BTC ratio, a sentiment indicator reflecting the relative value of ether compared with bitcoin, is at its lowest level since April 2021.
"Bitcoin has a very well established use case, which is a store-of-value currency," said Julio Moreno, head of research at CryptoQuant.
Some investors had hoped ether could compete with bitcoin, whose rate of supply growth slows every four years after the halving.
However, ether supply has been rising at a fast pace this year, and is on track to resume its pre-Merge levels in the next three months, according to CryptoQuant.
Persons:
Ethereum, bitcoin's, hasn't, David Duong, Mike Colonnese, Wainwright, Julio Moreno, Vitalik Buterin, Duong, — CNBC's Michael Bloom
Organizations:
ETH, BTC, H.C, Citi, Lightning, Coinbase's
Locations:
Solana