Ethereum ($ETH ), once the dominant force in decentralized applications, is facing mounting pressure on multiple fronts. Recent market data reveals a growing divergence in institutional interest:
Bitcoin ETFs now hold over $113 billion in assets, covering 5.76% of BTC's $BTC total supply — a striking contrast to Ethereum ETFs, which manage just $4.71 billion, or 2.22% of ETH's circulating supply. This gap underscores a decline in institutional appetite for ETH.
Adding to the challenge is Ethereum’s competitive disadvantage against next-gen Layer 1 networks like Solana Avalanche, and Sui — often dubbed "Ethereum killers." These blockchains are attracting developers and users alike with faster transactions and significantly lower fees, while Ethereum’s scalability upgrades continue to fall short of expectations at the base layer.
On the technical front, Ethereum has also broken away from its historical price correlation with Bitcoin. Since January 2025, ETH has failed to follow BTC’s bullish trajectory. This decoupling has created uncertainty for traders who rely on BTC-ETH synchronicity to build strategies, making ETH a less predictable asset for short-term trading.
With sentiment shifting and competition intensifying, Ethereum finds itself at a pivotal moment. Can it regain its edge — or is the era of Ethereum dominance coming to a close?
Stay informed and trade $ETH with confidence — only on Binance.
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