Ethereum (ETH) continues to perform poorly against Bitcoin, with data showing that ETH has fallen by 70% against BTC since the merger.
While analysts expected the September 2022 Merge upgrade to be good for ETH, more than two years later, Ethereum’s performance tells a different story.
Bitcoin has gained approximately 160% in value against Ethereum since Mertge.
While Ethereum’s failure to meet expectations and its weak performance against Bitcoin increased concerns about ETH’s market position, Alphractal CEO Joao Wedson announced important data regarding Ethereum.
Noting that long-term Ethereum investors have reduced their positions since the Merge, Wedson said that wallets holding 100,000 ETH or more have greatly reduced their holdings.
“The worst thing that ever happened to Ethereum was The Merge.
Despite initial expectations of deflationary benefits, ETH supply growth following the Merge stalled due to lower network activity and reduced transaction fees.
Long-term and short-term investors stopped accumulating ETH after Merge, i.e. since September 2022.
“Exchange addresses, old miners, and even funds with more than 100k ETH are not buying.”
The CEO of Alphractal said that while Ethereum investors have been decreasing and losing confidence, wallets holding 100,000 BTC and 1 million BTC have increased significantly since the Merger.
Finally, Wedson stated that Bitcoin and Solana (SOL) continue to gain the market share that Ethereum has lost, adding that although there is a short-term recovery in Ethereum, the risk of a long-term decline continues.
*This is not investment advice.
