The evaluation of Ethereum compared to Bitcoin suggests a potential undervaluation

AI Summary

According to BlockBeats, a recent analysis from CryptoQuant indicates that the ETH/BTC MVRV ratio suggests that Ethereum is significantly undervalued compared to Bitcoin, marking the first occurrence since 2019. Historically, such conditions have often led Ethereum to outperform Bitcoin. However, factors such as supply pressure, weak demand, and contained activity may hinder potential recovery.

The MVRV ratio (Market Value to Realized Value Ratio) is a metric used to assess the market value of an asset relative to 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 perform strongly relative to Bitcoin, often resulting in price increases. Currently, in 2025, the ETH/BTC MVRV ratio has fallen again into the undervaluation zone, approximately around 0.4, indicating that Ethereum may be undervalued compared to Bitcoin.