BTC and SOL Surge, Diminishing Crypto X’s Standing Compared to Ethereum

Crypto News- BTC and SOL Surge: Ethereum bulls find themselves in a defensive position amidst mounting criticism on Crypto X, triggered by Ether’s noticeable underperformance against Bitcoin (BTC) and other formidable altcoins. The Ethereum to Bitcoin price chart recently took a hit, dropping below 0.05 BTC on Dec. 20, hitting its lowest point in two years, dating back to April 28, 2021, according to data from CoinMarketCap.

BTC and SOL Surge, Diminishing Crypto X’s Standing Compared to Ethereum

In the prior bull market, the ratio had peaked at 0.087 BTC on Sept. 12, 2021, but has been on a continuous downward trend since then. Commencing 2023 with a ratio around 0.072, it has further dwindled. Critics on social media are attributing this decline to Ethereum’s transaction fees, contending that the high fees have incentivized users to explore alternative chains offering lower transaction costs.

On Dec. 20, prominent Bitcoin advocate Jason A. Williams declared, “Ethereum is broken. You don’t have to pay those fees anymore. You have options.” BitInfoCharts data indicates that Ethereum fees averaged around $11 on Dec. 19, while Bitcoin’s fees remained higher at approximately $32. In stark contrast, Solana consistently maintains fees under $0.01, as reported by CoinCodex.

Ethereum’s Struggles: Criticism Grows Amidst Fee Concerns and Solana’s Surge

Even Ethereum co-founder Vitalik Buterin has acknowledged the issue, expressing concern that Ethereum could face ultimate failure if transaction fees aren’t made more affordable, especially during bullish market conditions.

Despite the mounting criticism, fervent Ethereum supporters are rallying to defend the network. Anthony Sassano, host of The Daily Gwei, insists that Ethereum is undervalued in the current market. Ryan Sean Adams, co-host of Bankless, expresses astonishment at the negative sentiment surrounding Ethereum, boldly stating, “I never anticipated ETH would be viewed as a non-consensus underdog again, yet here we are. Long ETH 2024.”

Meanwhile, enthusiasts of Solana (SOL) are quick to highlight the coin’s robust performance against other cryptocurrencies, including Ether, particularly over the past three months. SOL has seen a 12% surge to $83 in the last 24 hours, as per CoinMarketCap. Some observers even go as far as suggesting that Solana could eventually “flip” Ethereum, especially considering its recent dominance in decentralized exchange (DEX), stablecoin, and nonfungible token (NFT) trading volumes.

However, Ethereum maintains its leadership in total value locked (TVL) with an impressive $28 billion, while Solana holds the fifth position with $1.15 billion, according to DefiLlama. Additionally, the Ethereum market cap/TVL (Mcap/TVL) ratio stands at 9.4 compared to Solana’s 30.45, a widely used metric for measuring a blockchain’s intrinsic value. The lower Mcap/TVL ratio for Ethereum could suggest that it is undervalued relative to Solana.