Ethereum has reached its lowest valuation relative to Bitcoin since May 2020, a significant event amid the overall volatility in the cryptocurrency market.
ETH/BTC Pair Falls to Lowest Point
On-chain data revealed that the ETH/BTC exchange rate fell to its lowest level since May 2020. The currency pair's trading rate currently stands at 0.023278, registering an 8.7% decline over the past 48 hours. Ethereum's total locked value collapsed by approximately $30 billion since last year.
Implications for the Crypto Market
Recent U.S. trade tariffs against Canada, China, and Mexico sent shockwaves across global markets. Stock plummets and reductions in crypto market caps reflected these pressures, with Solana and BNB chains registering losses of 35.6% and 23% respectively. Decentralized exchange trading volumes declined from $92 billion in December to $82 billion in February.
Ethereum Foundation Liquidation Rumors
Rumors have emerged that the Ethereum Foundation may face liquidation due to significant ETH price drops. An unidentified wallet, rumored to belong to the foundation, deposited 30,098 ETH into the Maker vault wallet, sparking community discussions. Foundation representatives have denied links to the wallet, yet the foundation's treasury has shrunk by 39% since March 2022.
The drop in Ethereum's value relative to Bitcoin highlights its current stand in the crypto landscape. These events could have profound implications for the Ethereum Foundation and the broader cryptocurrency ecosystem.
