Ethereum’s Waning Appeal: Bitcoin’s Rising Dominance
CNBC reports that crypto investors are starting to rethink ether's investment appeal. Once seen as a strong contender with its smart contracts platform, Ethereum now seems less attractive compared to bitcoin, which has clearer and broader use cases. Ether has lost nearly half its value from its peak and has lagged behind bitcoin since the 2022 Merge, missing out on the recent bitcoin surge.
Technically, Bitcoin's outperformance of Ethereum on the longer-term monthly chart is stark. The EMAs are in bullish formation, with the stochastic and RSI showing underlying momentum, supporting this outperformance.
While ether ETFs have consistently seen outflows, bitcoin ETFs have attracted significant inflows. The complexity of Ethereum's supply and staking mechanisms is making it harder for new investors to understand, dampening interest. Even though there has been some growth in DeFi activities, Ethereum's transaction revenue is at a low point, and its supply is rising, challenging the "ultra sound money" narrative.
This growing supply could soon return to pre-Merge levels, adding further doubts about ether's investment potential. As a result, Ethereum's position as a leading blockchain is under scrutiny.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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