Ethereum loses traction amid Solana and Bitcoin surge

Investing.com — Ethereum‘s cryptocurrency, Ether, continues to lose momentum in opposition to rival tokens. This decline comes amid the thrill generated by former President Donald Trump’s enterprise into the speculative phase of the digital property market.

The Ether-to-Bitcoin worth ratio, a measure of the second-largest token’s efficiency in opposition to the biggest, dropped to its lowest stage since 2021 on Monday, based on information analyzed by Bloomberg.

Throughout the identical interval, Bitcoin reached a document excessive of $109,241. In the meantime, Solana‘s native token, a blockchain that competes with Ethereum, achieved new highs over the weekend.

The surge in Solana’s worth was largely pushed by two memecoins launched on its blockchain by Trump and his spouse Melania main as much as his inauguration. Trump’s memecoin noticed intense buying and selling exercise over the weekend, reaching a market capitalization of $15 billion earlier than experiencing a pointy drop, as per information from CoinMarketCap.

The professional-crypto stance adopted by the Republicans has benefitted most main digital property since Trump’s victory over Democrat Kamala Harris in November.

Memecoins, usually represented by joke tokens like Dogecoin, are extremely unstable cryptocurrencies with little inherent worth. They’ll document substantial features in the event that they garner the eye of social media customers, however are equally vulnerable to speedy crashes.

Solana, self-proclaimed as an “Ethereum killer,” has develop into the popular community for memecoin launches. The value ratio of its token in opposition to Ether reached a document excessive on Sunday, as speculators invested closely within the Trump cash.

Whereas different cryptocurrencies are setting information, Ether stays about 30% under its 2021 peak. Over the previous 12 months, the token has elevated by 39%, in comparison with features of 156% and 180% for Bitcoin and Solana, respectively.

The comparatively subdued demand for Ether has precipitated concern amongst traders. Over the previous three months, a gaggle of 12 Bitcoin exchange-traded funds within the US noticed a internet influx of over $17 billion, whereas comparable Ether-investing merchandise solely attracted $3 billion, based on Bloomberg information.

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