3 reasons why Ethereum may underperform Bitcoin in the short-term

However, as cryptocurrency markets initiated a sharp drop on May 12, the trend started to reverse, and since then, Ether has underperformed by 25%.

Some might say it is a technical adjustment after a strong rally.

Notice how the ETH/BTC ratio rallied again on June 8, reaching 0.77 despite Ether’s price remaining 36% below its all-time high and ranging near $2,800.

Ether’s bull run potentially got an extra leg due to intense praise from institutional investors.

The successful growth of the DeFi industry and non fungible token markets caused intense congestion on the Ethereum network, raising median fees to $37 in mid-May.

To make things worse, important DeFi projects expanded to Binance Smart Chain, including yield aggregator Harvest Finance and decentralized exchange aggregator 1inch.

Bitcoin might have had a subpar performance over the past 30 days because it has failed to break the $42,000 resistance multiple times.

Ethereum is undertaking a redesign that will change the issuing rate and how entities get paid to secure the network by moving away from the Proof of Work model.

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