Bitcoin Continues to Surge While Ethereum Faces Pressure from Solana’s Rise

Bitcoin surged past $109,000, setting a new all-time high, as excitement surrounding Donald Trump’s inauguration fueled market momentum.

Meanwhile, Ethereum faced setbacks, hitting its lowest value against Bitcoin since March 2021, with the ETH/BTC ratio dropping to 0.03.

The rise of Solana played a significant role in Ethereum’s struggles. Solana’s popularity has surged, driven by the memecoin trend, including Trump’s decision to launch his official memecoin on the Solana blockchain instead of Ethereum. This shift has impacted Ethereum’s performance in the current cycle.

According to Min Jung, an analyst at Presto Research, Solana’s momentum, fueled by events like memecoin launches, has placed Ethereum at a disadvantage. However, Jung highlighted that Ethereum still holds strong institutional appeal, noting recent ETH accumulation by World Liberty Financial as evidence.

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Despite challenges, Ethereum remains resilient. With its position as the only cryptocurrency besides Bitcoin to have an ETF, it continues to attract attention and retains a pivotal role in the broader crypto landscape, according to Jung. The analyst added that Ethereum is well-positioned to remain a significant focus for investors once Bitcoin’s rally stabilizes.

Alexander Zdravkov