Ethereum (ETH) has reached its highest level against Bitcoin since May 2018. Is there a threat of a decline?

Completely overshadowed by the enthusiasm for irrefutable tokens and meme coins, Bitcoin was now well on the way to its arch-rival Ethereum at the time.

The ETH / BTC pair hit their highest level since May 2018 after successfully breaking key resistance at 0.077 BTC.

While Bitcoin is currently still up 97%, it compares to Ethereum inferior to Ethereum, which is up 551% over the same period.

While the ETH / BTC pair has yet to double from now on, it’s not hard to see why Bitcoin is likely to continue to be crushed by ether.

While the bullish narrative around Bitcoin has largely revolved around its store-of-value properties, higher actual returns could create more downward pressure on “digital gold”. On the other hand, Ethereum has become a major target for decentralized application developers and NFT issuers, pushing cryptocurrency into the mainstream.

In addition, proponents of ETH argue that the deflationary nature of the coin makes it an even better store of wealth than the largest cryptocurrency.

After starting the year on a high, Bitcoin’s rally stalled after Tesla stopped accepting the cryptocurrency in May due to environmental concerns. The sudden rejection has raised concerns about the adverse effects of proof-of-work mining (PoW). Last month, the Swedish authorities supported an EU-wide ban on Bitcoin mining because of its carbon footprint.

Ether, on the other hand, is approaching a proof-of-stake algorithm (PoS), which is intended to reduce energy consumption by 99.5%.

Meet the “Ethereum Killers”

However, Ethereum needs to fix its own problems. As reported by U.Today, Su Zhu, the co-founder of Singapore-based hedge fund Three Arrows Capital, has given up Ethereum in favor of Avalanche due to high blockchain fees.

There’s no shortage of chains with fast-growing communities aiming to eat up Ethereum’s market share.

Binance Chain, Solana, Cardano, Polkadot and finally Avalanche vie for the Ethereum Smart Contract crown.