Bitcoin

Ethereum

In the past week, Bitcoin has <a href="https://research.kaiko.com/insights/why-is-eth-still-lagging-behind-btc" rel="noopener noreferrer nofollow">outperformed</a> Ethereum, even with a favorable macroeconomic backdrop for both <a href="https://crypto-economy.com/ethereum-vs-bitcoin/" rel="noopener noreferrer nofollow">cryptocurrencies</a>.Following the unexpected 50 basis point interest rate cut by the Federal Reserve, BTC has surged by 14%, nearing $70,000. In contrast, ETH has struggled, with the ETH/BTC ratio dropping to 0.04, marking its lowest level since April 2021.A key factor for this performance disparity is the slower institutional adoption of Ethereum compared to Bitcoin. Despite the introduction of ETH ETFs in July 2024, these products did not garner the same level of interest as their Bitcoin equivalents.<h2 id="header-0">Low Institutional Adoption</h2>Bitcoin futures on the CME have hit all-time highs in open interest, while Ethereum futures show much lower engagement, with only 7,300 contracts currently active. This lower interest indicates a less mature market and weaker institutional support.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/98ec97a33bb049e4b79b68ee4ab4a209.jpg" />Bitcoin has also capitalized on its first-mover advantage on key trading platforms and among financial advisors. In 2023, many advisors started recommending Bitcoin ETFs to their clients, while Ethereum-based products have been less appealing due to the absence of <a href="https://crypto-economy.com/ethereum-staking/" rel="noopener noreferrer nofollow">staking</a> options.<h2 id="header-1">ETHEREUM LOSES GROUND TO ALTCOINS</h2>Demand for Ethereum in spot markets has also been tepid. In October, it was outperformed in trading volume by numerous altcoins, widening the gap between ETH and the top 50 altcoins.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/62ad45cd8293413bb842be2266197bda.jpg" />The investor preference for higher-risk altcoins, coupled with Ethereum&#39;s lackluster performance since the Merge and competition from blockchains like Solana, has contributed to this situation. Moreover, investors can access the ETH network through Layer 2 solutions, which have generally outperformed ETH itself.While Bitcoin leads in institutional adoption, some experts believe the upcoming U.S. elections could alleviate regulatory risks for Ethereum, potentially influencing its future adoption. If its ecosystem progresses and receives industry support, the dynamics of its adoption may shift, affecting its market value and demand.

Ethereum Trails Bitcoin Despite Favorable Conditions

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Crypto Economy

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