@waxes

Since the Ethereum ETF approval in July 2024, the ETH/BTC ratio has shown signs of recovery, climbing toward 0.06. However, its sustainability at 60% of prior levels remains uncertain. Ethereum's focus on Layer 2 scaling has reduced short-term revenue, while the SEC’s ban on ETF staking limits yield potential (currently 3%, potentially 4-5% with staking). Bitcoin ETFs have outpaced Ethereum, with $35B in net inflows versus $2.45B for ETH. Market sentiment is cautiously optimistic—ETH’s price hovers around $2,090, bolstered by institutional interest from firms like BlackRock. Yet, analysts like QCP Capital warn of no sustained breakout without stronger catalysts. A “double-leader” dynamic with Bitcoin seems more likely than Ethereum overtaking it soon. For now, 60% recovery holds, but long-term sustainability depends on staking approval and Ethereum’s L2 payoff.

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