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Analytical platform CryptoQuant has presented a concerning report on the state of Ethereum, the world’s second-largest cryptocurrency. According to expert data, since transitioning to the Proof-of-Stake (PoS) consensus algorithm, Ethereum’s price has significantly lagged behind Bitcoin, and this trend may continue.

Reasons for Ethereum’s Lag

The key factor behind Ethereum’s underperformance, according to CryptoQuant analysts, is low on-chain activity. Since the transition to PoS two years ago, Ethereum has lagged behind Bitcoin by 44%. Moreover, it also trails other cryptocurrencies: falling behind Solana by 53% and BNB by 18%.

Experts note that the total volume of transaction fees on the Ethereum network is decreasing. This is attributed to the Dencun upgrade, which has led to a reduction in the asset’s burning rate and, consequently, to increased inflation in the network. This situation negatively impacts Ethereum’s attractiveness to investors.

Forecasts and Market Trends

CryptoQuant analysts predict that Ethereum’s value may continue to fall in September. They note that most traders and investors currently prefer Bitcoin, which is reflected in the volumes of spot trading in the market.

Interestingly, despite Ethereum’s lag, CryptoQuant experts previously noted the formation of a rare positive correlation between Bitcoin and altcoins. In their opinion, most crypto assets are now moving in sync with the first cryptocurrency.

This situation creates an interesting paradox in the market: despite the overall correlation, Ethereum continues to lag behind Bitcoin. This may indicate deeper structural problems in the Ethereum ecosystem that are not solved by the transition to PoS alone.

This situation creates an interesting market paradox: despite the overall correlation, Ethereum continues to lag behind Bitcoin. This may indicate deeper structural problems in the Ethereum ecosystem that are not solved by the transition to PoS alone.