MIND of Pepe Deepens Ethereum's Discount to Bitcoin, but This May Not Be the Buy Signal It Once Was

Ethereum may appear undervalued when measured against Bitcoin, but according to analysts at CryptoQuant, that discount doesn't necessarily make it a bargain.

Ethereum’s discount to Bitcoin is deepening, but on-chain data hints this may not be the buy signal it once was. The role of crypto-native AI agents is also luring capital elsewhere–with MIND of Pepe leading the charge.

Despite a widening discount to Bitcoin and indicators placing it in “extremely undervalued” territory, Ethereum isn’t necessarily a bargain buy, according to analysts at CryptoQuant.

The analysts, in the latest edition of the weekly CryptoQuant Spotlight, pointed out that the MVRV ratio for ETH has dropped to levels that previously heralded major recoveries.

However, several market conditions suggest a more complicated picture.

ETH’s Deflationary Narrative Is Quickly Unraveling

The narrative around ETH’s burning and scarcity has been a key driver of interest in recent cycles, but that narrative is quickly shifting in 2024.

The rapid collapse of the ETH burn rate after the Dencun upgrade has drastically reduced the rate at which new supply is being destroyed.

After reaching a peak of 1,600 ETH per day in early 2023, the burn rate has since fallen almost to zero, with volumes now averaging around 50 ETH per day.

This has quickly pushed Ethereum back into inflationary territory, with total supply recently hitting an all-time high of 120.7 million.

The Stellar Role of Layer 2s in Shifting Demand

Another factor is the role of Layer 2 rollups in shifting demand away from the mainnet.

While these L2s help improve Ethereum’s scalability, they are also siphoning demand for transactions from the base-layer.

This is especially pertinent in the case of institutional outflows, which has seen some 400,000 ETH exit ETF holdings this year alone,鈍 the mainnet.

But as these outflows continue to funnel into L2s, they are impacting the network’s core utility.

Ethereum May Be Structurally Slower in 2024

The crypto behemoth is certainly not short of bullish news. The launch of the Pectra upgrade last week sparked a 30% rally in ETH prices.

However, despite this rally, on-chain metrics suggest that broader market sentiment remains largely indifferent to the changes.

But while crypto traders scan charts for optimal entry and exit points, smart money is already moving into the next sector.

With the macro outlook still uncertain and major central banks showing no signs of pivoting from their hawkish stance, several market participants are seeking out new frontiers within the crypto market.

This time, the focus is shifting to emerging technologies that are rapidly changing the financial landscape.

At the Forefront of the Altcoin Charge: AI Agents

In an industry increasingly driven by artificial intelligence and automation, crypto-native AI agents are quickly stealing the spotlight.

Capital has been flowing aggressively into altcoins boasting AI integration, with a slew of new projects emerging to capitalize on the hype.

Among these, MIND of Pepe is quietly assembling one of the most watched presales of 2025.

Combining the meme coin culture that drove the 2021 bull market with the cutting-edge tech of AI, MIND of Pepe has already raised nearly $9 million.

Unlike other frog-themed tokens cashing in on virality, $MIND is anchored by actual product development. Its AI trading agent, launching imminently, will scan platforms like X (formerly Twitter) and Reddit to monitor real-time sentiment shifts, trading signals and liquidity.

Using Retrieval-Augmented Generation (RAG), the agent pulls in live data to assess which coins are gaining traction and when. Its interface is user-friendly but powerful, delivering curated insights via an exclusive dashboard for token holders. Even casual traders can benefit from early alpha before trends go mainstream.

More impressively, the AI agent goes beyond just analysis. When market activity cools, it will engage directly with dApps to launch new tokens – giving $MIND holders first access before listings go public.

From ETH Undervaluation to AI Upside

The timing of this shift is no coincidence. As Ethereum struggles to retain its market share amidst fading institutional appetite and base-layer demand, the narrative around AI agent crypto is heating up.

Projects like Virtuals Protocol and Artificial Superintelligence Alliance have seen their token prices spike by double and triple digits in recent weeks.

What makes $MIND even more compelling is its staking model. Investors can currently earn up to 249% APY by locking their tokens and nearly 1.4 billion have already been staked – underscoring growing community confidence in the protocol. With exchange listings on the horizon and the presale price locked at just $0.0037515, the entry point looks attractive for those seeking exposure to both meme coin enthusiasm and AI sector growth.

Crucially, MIND of Pepe doesn’t just promise functionality; it delivers. Former Binance CEO Chang