7 Big Problems Holding Ethereum Back Right Now

Ethereum has taken a brutal hit against Bitcoin since late 2020, dropping a staggering 77% in value when measured in BTC terms.

Since late 2021, Ethereum has taken a brutal hit against Bitcoin, dropping a staggering 77% in value when measured in BTC terms. A new report by blockchain analytics firm Santiment outlines the causes behind this prolonged decline—while also pointing to reasons Ethereum’s future isn’t written off just yet.

Though still ranking second in market cap, Ethereum has failed to recover from its November 2021 peak of $4,760. Many holders remain underwater, especially when comparing their ETH bags to Bitcoin’s continued strength.

Why Ethereum Keeps Falling Behind

The firm didn’t mince words, detailing several reasons for Ethereum’s fading momentum:

Despite the pessimism, Santiment sees potential for Ethereum to turn things around.

"The narrative has changed drastically for Ethereum, now a subject of ridicule as Bitcoin and high-growth altcoins steal the limelight. Can ETH recover user trust, simplify its story, and improve usability before the competition catches up?" the firm concluded.

But It’s Not All Doom

However, while Ethereum’s technical prowess is undeniable, its position seems weak against BTC’s persistent strength.

The report highlights Ethereum’s role as a hub for DeFi, NFTs, and tokenized assets, all converging within its ecosystem. Moreover, Vitalik Buterin continues to lead a robust and dedicated developer community, driving innovation in the realm of decentralized applications.

“[The analysis] provides a glimpse into the factors that may be influencing Ethereum's price performance and the challenges it faces in the competitive cryptocurrency landscape,” the report concludes.

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