Chain data revealed that Ethereum has dropped to its lowest valuation compared to Bitcoin in May 2020. The current trading rate is 0.023278, marking an 8.7% decline over the past 48 hours.
Chain data revealed that the Ethereum/Bitcoin exchange rate recorded its lowest level since May 2020. The trading price of the currency pair is currently 0.023278. The total locked value of Ethereum has decreased by about $30 billion since last year.
ETH/BTC pair drops to its lowest level since May 2020
Coinmarketcap data revealed that the ETH currency has lost 42.9% of its value since December 2024. Its current price is $1,945 per coin. Markets have experienced volatility this year due to macroeconomic factors and regulatory uncertainty.
Urgent 🚨: Ethereum (ETH) value has dropped to its lowest level compared to Bitcoin (BTC) since May 2020 pic.twitter.com/3rTFuPygua
— Barchart (@Barchart) March 12, 2025
Recent U.S. tariffs on Canada, China, and Mexico have shocked global markets, resulting in a sharp decline in stock prices as investors expressed concerns about the possibility of a trade war between these countries.
Cryptocurrency markets overall have experienced a decline in prices and a decrease in market capitalization. Data from Coinmarketcap indicated that the market capitalization of Ethereum fell during the crash more than any other crypto asset.
Data indicated that the Solana and BNB chains recorded losses of 35.6% and 23%, respectively. TradingView data also showed that the total locked value of the Ethereum network (TVL) decreased from its peak of $74 billion in December to $45 billion.
The decline in the currency pair's price indicates a shift in the relative value of Ethereum compared to Bitcoin. This decline reflects a general market trend toward Bitcoin over Ethereum. Tradingview data revealed that cryptocurrency liquidations rose over the past 24 hours to exceed $900 million. The analytical platform noted that long-term buy positions for Ethereum worth $202 million were wiped out from the network at once.
Liquidations began after Ethereum lost its key support level at $2,000, which alleviated the burden of losses on investors during previous sell-offs. DefiLlama data revealed a slowdown in stablecoin flows over the past month, indicating reduced capital turnover in Ethereum protocols.
Data also indicated a decline in trading volumes on decentralized trading platforms from $92 billion in December to $82 billion in February. Futures trading on Ethereum recorded a decline from $31 billion in December to $18 billion in February. DefiLlama data revealed that Ethereum's revenue fell from $193 million in December to $26 million in February.
Data from SosoValue indicated that Ethereum exchange-traded funds saw increased outflows of $176 million over the past month. The data pointed to a decline in institutional demand for Ethereum.
The Ethereum Foundation faces liquidation rumors amid the decline in ETH price
An anonymous wallet, rumored to belong to the Ethereum Foundation, deposited 30,098 Ethereum into the Maker Vault. This deposit stirred rumors in the cryptocurrency community, with some suggesting that this could indicate the foundation plans to liquidate its holdings.
Ethereum developers, Eric.eth and Sassal.eth, responded to the rumors and denied that the wallet where the deposit was made belongs to the Ethereum Foundation. Cryptocurrency traders speculated that the foundation could face a liquidation exceeding $100 million if the price of Ethereum continues to decline.
The Ethereum Foundation revealed that its treasury value reached $970.2 million in October last year. This represents a 39% decrease from its value of $1.6 billion in March 2022. This decline is attributed to the drop in Ethereum's price, as this currency constitutes 81.3% of the foundation's assets.
The foundation swapped 100 Ethereum for 374,334 Dai in December. It also revealed that it sold 4,266 Ethereum during 2024 to increase its returns. The foundation disclosed that it raised $12.21 million, averaging $2,795 per Ethereum.
The Ethereum Foundation invested 50,000 Ethereum worth over $165 million in Aave in January 2025. It is said that the foundation decided to achieve returns as the price of Ethereum continues to decline. Periodic sales indicate that the foundation has managed its treasury holdings to cover operating expenses.
Some investors commented that if the price of Ethereum continues to decline, the institution might have to sell parts of its holdings at less favorable prices. They hinted that if Ethereum falls below support levels, the institution may fail to meet its financial obligations, potentially leading to liquidation.
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