According to BlockBeats, recent analysis by CryptoQuant indicates that the ETH/BTC MVRV ratio suggests Ethereum is significantly undervalued compared to Bitcoin, marking the first occurrence since 2019. Historically, such conditions have often led to Ethereum outperforming Bitcoin. However, factors such as supply pressure, weak demand, and subdued activity may hinder a potential rebound.
The MVRV (Market Value to Realized Value) ratio is a metric used to assess an asset's market value against its 'real value,' typically based on the average cost held by investors. The ETH/BTC MVRV ratio reflects the market value of Ethereum relative to Bitcoin compared to their realized values.
Analysis of historical data shows that when the ETH/BTC MVRV ratio falls into the undervaluation zone, as seen in 2019, Ethereum tends to exhibit strong performance relative to Bitcoin, often resulting in price increases. Currently, in 2025, the ETH/BTC MVRV ratio has again dropped to the undervaluation zone, approximately around 0.4, indicating that Ethereum might be undervalued compared to Bitcoin.
