Sentiment over Ethereum has waned in recent weeks as Bitcoin took the limelight with a push to a new 2023 high.

Moreover, rival blockchains such as Solana and Avalanche are gaining traction, with token price gains outpacing ETH. 

On Dec. 21, Glassnode analyst “Checkmatey” opined that the decline in the market cap ratio between ETH and BTC might only be halfway.

He made the case that Bitcoin is likely to continue increasing its dominance relative to Ethereum.

Ethereum Sentiment Weakens 

Moreover, across derivatives markets, Bitcoin dominance continues to grow relative to Ethereum, he noted, adding that it is now in 70% territory.

A monthly change in realized market capitalization shows much larger capital inflows for Bitcoin at $13.8 billion per month compared to just $6 billion for Ethereum. 

“This suggests Bitcoin is seeing stronger buyer demand,” he said. 

If history is any guide, the decline in market cap ratio between $ETH and $BTC may only be half-way…

Below is a 🧵 covering a few different measures of market dominance between #Bitcoin and #Ethereum, which paints a case for continuation, not reversal.https://t.co/RiPVkb7zoF pic.twitter.com/x0Wa1tldmm

— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) December 20, 2023

He also noted that Ethereum’s realized market cap remains overvalued compared to Bitcoin. As ETH holders capitulate and sell at a loss, locking in lower prices, Ethereum’s realized cap will drop further.

Moreover, Bitcoin tends to recover faster than Ethereum after drawdowns in realized market cap. Exchange flow metrics also show Bitcoin commands over 75% dominance in transfer activity. 

It is not all doom and gloom for the world’s second-largest crypto asset, however, and these sentiment lulls happen every cycle. On Dec. 21, Ethereum advocate Anthony Sassano commented on this: 

“Seems like we’ve finally reached the “death of ETH party” phase of the cycle. Just bought more ETH to celebrate.” 

Fellow Etherean Ryan Sean Adams said he was “gobsmacked” by all the negativity for ETH. 

“I never anticipated ETH would be viewed as a non-consensus underdog again, yet here we are,” he said. 

Fundamentally, Ethereum is as strong as ever, as detailed by Sassano earlier this week. 

ETH Prices Remain Flat

Ethereum prices have been flat for most of the past week, seesawing between $2,150 and $2,250. It has gained 83% since the beginning of this year, however, which is not bad for a dead coin. 

At the time of writing, Ethereum was changing hands for around $2,200, having gained 9% over the past 30 days.