ETH/BTC ratio falls to 2016 levels, signaling deepening weakness

The ETH/BTC ratio has fallen to approximately 0.0265, returning to levels not seen since 2016. According to FinanceSpeed, this indicates that ETH has surrendered most of the relative strength it had built against BTC over the past several years. The market attributes ETH's weakness to several factors, including slowing demand for spot ETFs, intensified competition from other Layer 1 blockchains, and a decline in fee revenue due to the expansion of Layer 2 solutions. In contrast, BTC maintains its relative strength, supported by the adoption of spot ETFs, growing institutional demand, and high liquidity. This has led to an analysis suggesting that investors perceive BTC as the safer choice among major crypto assets, FinanceSpeed explained.