Ether Turns to POS on Second Anniversary, Lags Bitcoin by 44% in Performance Over the Same Period

On 6 September, analysts reported that Ether has trailed Bitcoin by 44% in the same period since moving to a proof-of-stake network. Analysts say Ether could fall further due to weakening network activity and increased supply. Next week marks the second anniversary of Ether's move to a proof-of-stake network, and even after the Ether Spot ETF was approved in the U.S. on 23 July, Ether continues to underperform Bitcoin, with the ETH/BTC exchange rate now at 0.0425, its lowest level since April 2021, according to analysts.

Since the merger, ethereum has also underperformed torrents such as Solana and BNB, lagging 53 per cent and 18 per cent respectively,’ said Julio Moreno, head of research at CryptoQuant. CryptoQuant analysts added that ethereum remains above the undervalued area. We estimate that using Bitcoin as the exchange rate, Ether would need to fall to around 0.02, or 50 per cent, to enter undervalued territory,’ the CryptoQuant analysts added.

The CryptoQuant analysts also highlighted the supply dynamics that are working against the ethereum price: ‘Total supply of ethereum has been growing steadily since early April, shortly after the latest Dencun upgrade. Total supply now stands at 120.323 million pieces, the highest level since May 2023.’