In recent months, Ethereum (ETH) has attracted the attention of institutional investors, leading to increased interest in the cryptocurrency despite challenges with the ETH/BTC ratio.
ETH/BTC Ratio Hits Record Lows
A report from CoinGecko shows that the ETH/BTC ratio has been below 0.05 for 14 consecutive months as of July 2025. The yearly average ETH/BTC ratio in 2025 dropped to 0.027, its lowest level in five years. CoinGecko attributes this decline to Bitcoin's continued institutional support and shifts in altcoin trading trends.
Ethereum's Journey from Outperformance to Underperformance
From 2015 to 2017, Ethereum strongly outperformed Bitcoin. However, since late 2020, Bitcoin has regained dominance, causing the ETH/BTC ratio to decline and resulting in less profitability for Ethereum holders compared to Bitcoin.
Ethereum Shows Resilience Amid Market Challenges
Despite its underperformance relative to Bitcoin, Ethereum continues to show resilience. Large investors are actively increasing their holdings, and the network usage remains high. For instance, Ethereum fund holdings have doubled since April 2025 to 6.5 million ETH, and staking has reached a record of 36.15 million ETH, indicating strong participation from major holders.
Despite some market challenges, Ethereum remains a stable asset with growing interest from institutional investors, which could point to its long-term viability.
